2008 Retirement Contribution Deadlines

2008-retirement-contributions

Tax time is just around the corner.   For those that still haven’t funded your retirement accounts, it’s not too late.  If you are a client of my firm here are some key items you need to know to ensure that you get your retirement funds without issue.   At the bottom, I have included my firm’s service tips to handle what happens if a client tries to make a contribution at the last minute.   Please don’t be that client :)  Ensure that you have adequate time to get your 2008 contributions deposited in time.   There are several ways to make a retirement contribution at LPL Financial.  Below we have listed each method with helpful reminders to ensure your clients meet the deadline.

2008 Retirement Contribution Deadlines

Contributions can be made to a Traditional or Roth IRA for a year at any time during the year or by the due date for filing an IRS tax return for that year, not including extensions. For most people, this means that contributions for 2008 must be made by April 15, 2009.  This means that you must open the Roth IRA before that deadline, too.

There are several ways to make a retirement contribution at LPL Financial.  Below we have listed each method with helpful reminders to ensure your clients meet the deadline.

Personal Checks Sent to LPL Financial

  • Contributions must be postmarked to LPL Financial no later than Wednesday, April 15, 2009.
  • Contributions to Traditional and Roth IRAs may be made without a contribution form only if the account number and applicable year are clearly indicated on the check.

If I received a  personal check for a retirement contribution in my LPL Financial branch office after Wednesday, April 15, but you mailed it to my branch office on or before the deadline, I can include the your post-marked envelope when forwarding the check to the Money Desk at the LPL Financial Home Office.

Branch Deposits

  • Contributions must be received by LPL Financial no later than Wednesday, April 15, 2009.
  • Contributions to Traditional and Roth IRAs may be made without a contribution form only if the account number and applicable year are clearly indicated on the check.

If you receive a client’s personal check for a retirement contribution in your LPL Financial Branch Office after Wednesday, April 15, but the client mailed the contribution to your branch office on or before the deadline, fax a copy of the client’s post-marked envelope along with your Daily Deposit Report.

Journal Request

All contributions to be made by journal must be requested using the Contribution Instructions – Journal Request form (FR141) signed by the client and clearly showing the type and applicable year for the contribution.
For year 2008 contributions, this form must be postmarked or faxed to LPL, signed by the client and in good order, no later than Wednesday, April 15, 2009.  To ensure adequate processing time, have these requests faxed to the

Contributions on Demand

Accounts that have the Contributions on Demand feature can utilize the Cash Journal Utility to contribute (including previous year contributions) to their accounts by either a journal or in cash or ACH Debit, depending on the account funding election selected by your client during the setup of the Contribution on Demand feature.
To ensure adequate processing time, please make the Cash Journal Utility request by April 3rd 2009

Periodic Contribution Request

For future retirement contributions for your client, you may want to take advantage of using the Contribution Instructions – Periodic form (FR142).  This form allows you and your client to establish periodic retirement contributions.  The contributions can be delivered on a desired frequency by journaling from another LPL account, or by drafting from your client’s bank account through ACH.  In addition, you can pair the periodic contribution with systematic mutual fund trades set up on BranchNet.

Retirement Contribution Service Tips

Here are a few service tips that my firm put out for us for last minute retirement contribution requests:

1.       Your client shows up to your branch office with a retirement contribution request on Wednesday, April 15.  You have three options: (a) if you are part of the Branch Deposit program and you have time to make the bank deposit and fax in the Daily Deposit Report on Wednesday, April 15 then proceed with the branch deposit, (b) if you have time to meet the overnight delivery by your preferred carrier then proceed with sending the check overnight to the Money Desk at the LPL Financial Home Office, or (c) if you have exhausted the previous options, have the client take the check to the Post Office to mail the check to the Money Desk at the LPL Financial Home Office with Wednesday, April 15, 2009 postmark.  Ensure that the account number and applicable year are clearly indicated.

2.       Your client calls you with a retirement contribution request on Wednesday, April 15.  Your client may have two options: 1) he or she will need to go to the Post Office to mail the check to the Money Desk at the LPL Financial Home Office with Wednesday, April 15, 2009 postmark. 2) if your client has pre-existing Contribution on Demand Instructions, you can make a request using the Cash & Journal Utility by 9 am Pacific Time.

Money Desk Reminders

To avoid delayed deposits or return of unacceptable checks, take advantage of these important tips:

1.       Save your client’s postmarked envelopes containing retirement contributions.

2.       Advise your clients that they cannot send: cash, non-bank money orders (regardless of the amount), travelers checks, credit cards, credit line checks or checks made payable to the representative or representative’s RIA or DBA.

3.       Checks that are returned to the bank due to non-sufficient funds need to be replaced by a negotiable check by April 15, 2009 to be eligible for a year 2008 retirement contribution.

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