With just some days to go earlier than TD Ameritrade advisors and their shoppers’ accounts make the hotly anticipated transfer to the Charles Schwab platform, Grier Rubeling — founder, proprietor and operator of consulting agency Advisor Transition Companies — highlighted three tax-related ideas to assist advisors handle the conversion over the Labor Day weekend.

Rubeling posted a complete of 9 tips on taxes and different points for TD advisors affected by the conversion through a sequence of LinkedIn posts based mostly on what she’d learn from info that Schwab offered to TD advisors. She then compiled them in a visitor submit for Kitces.com.

“From the suggestions that I’ve gotten with the following tips from advisors —  and I’ve gotten a number of suggestions — individuals have realized extra from the following tips than they realized from something that they bought from Schwab simply due to the overwhelming nature of the subject material,” she informed ThinkAdvisor in an internet interview on Wednesday.

The information had been based mostly on particulars Rubeling stated she examine in about 150 pages of Schwab info. She may have added extra ideas, however the 9 she chosen had been among the many most vital ones, she added.

Tax Tip 1: IRA Contributions and Distributions

Throughout an internet interview on Wednesday, Rubeling informed ThinkAdvisor: “Any contributions and distributions that had been made previous to this weekend, previous to the conversion date, they don’t seem to be going to [be reflected] on the Schwab system.”

TD shoppers “will nonetheless get a tax doc from TD Ameritrade that reveals any contributions or distributions that had been made for the 12 months 2023, but it surely’s not as if there’s going to be a consolidated place on the Schwab system that reveals what your 2023 contributions and distributions had been,” she warned.

She defined: “They’ll solely present any contributions or distributions that had been made post-conversion 2023.

“So, when you’ve got month-to-month contributions coming into retirement accounts or month-to-month contributions going out of retirement accounts, then … 75% of these are going to be proven on a TD Ameritrade tax doc for 2023, and the opposite 25% of them are going to be proven on a Schwab tax doc for 2023, and there’s nowhere within the system you can go and see them consolidated.”

Meaning it’s mainly a handbook course of however “nothing’s actually going to alter,” she stated, explaining: “These recurring contributions and distributions will nonetheless be arrange at Schwab and nonetheless occur. However it’s not such as you’re going to have the ability to go into the system on December 31, 2023 and say, ‘okay, how a lot cash was contributed for the 12 months 2023 to this IRA?”

Advisors will as a substitute “have to drag the report from TD Ameritrade and have a look at the Schwab system and add the 2 numbers collectively,” she added.

The tax paperwork “will all come from Schwab [and] all the things might be mirrored on the Schwab system,” she confused. “Nonetheless, should you nonetheless want historic information, you’ll nonetheless have to reference the TD Ameritrade stories for the historic information.”

Subsequently, Rubeling steered “pulling now from TD Ameritrade the stories on any IRA contributions and distributions made within the 12 months 2023 and any earlier years.” That’s as a result of, “if for some cause you need that info, like typically individuals will pull a 2022 report simply to check 2022 with 2023 to make it possible for they’re not lacking if someone contributed to their IRA,” she famous.

Advisors might name shoppers and ask whether or not they wish to max out their contributions for this 12 months, she identified. To do this, nevertheless, it’s “necessary to drag that info since you received’t have entry to it anymore at Schwab,” she stated.

She conceded, nevertheless, that it’s “a kind of issues the place it could not have an effect on your online business in any respect should you don’t do recurring contributions or distributions or should you don’t have shoppers who’re making final minute contributions to their IRAs proper earlier than tax deadlines.”

“However, should you do, then it may considerably have an effect on it since you may miss a bunch of contributions since you didn’t even notice they didn’t make them but,” she added.

On Kitces.com, she identified: “Handbook calculations will should be completed so as to add the pre-conversion quantities to the post-conversion quantities to get the full quantities. Two tax paperwork might be issued, one from every establishment.”