Meet Bill Hoffman, a tax and 403(b) retirement planning advisor for Northwest Retirement Services in Oregon. For almost 35 years, Bill has worked with local and state employees. About one third of Bill’s 1,800 clients are beginning to take their Required Mandatory Distribution (RMD), so he often relies on TRAK’s accurate calculations and reports.
Bill receives many calls from accountants seeking his advice on RMD. “Tax preparers are calling us to see if they’re calculating the RMD correctly,” says Bill. “They usually don’t want to run the RMD calculations themselves, because they have limited knowledge and don’t want to assume the fiduciary responsibility.” Bill uses TRAK’s RMD calculator to perform the calculations and illustrate the effects of the RMD on the account over time.
By providing accurate RMD calculations, Bill has solidified his relationship with accountants, and that is resulting in new client referrals. “Using TRAK’s RMD calculator with CPAs and tax preparers allowed me to capture over $12 million in IRA rollovers in 2013,” says Bill.
Bill sees his role as complementary to that of an accountant, particularly for clients who want to take distributions beyond the RMD. “Often my clients want to take a distribution, but before we do that, I recommend we run a calculation that compares the impact of different distribution amounts, say $30,000 versus $50,000,” explains Bill. “With TRAK, it takes only about five minutes to run the report. It’s definitely not tax advice, but it separates me from the other reps.” TRAK helps Bill build and maintain strong partnerships with his 403(b) clients and their accountants.
Many of Bill’s clients have multiple IRAs to supplement their state pensions, so they often have questions about pension maximization. Bill uses TRAK’s Pension Maximization calculator to illustrate the benefits of using a life insurance contract in certain situations to maximize the monthly state retirement income for a married couple. “TRAK’s Pension Maximization calculator is excellent, says Bill. “It is one of my ‘must-have’ calculators.”
“TRAK is so simple to use and it’s very efficient. This tool has really helped me serve my clients well and they, in turn, refer new clients to me,” says Bill.