A SWP (Systematic Withdrawal Plan) directs a client’s income from investments in an account. Income from funds and other products is applied to a client's specified bank account, or investment units are sold and then the money is applied to the client's bank account as determined by the information contained in the SWP.
2. Select SWP from the More... menu. The SWP Summary dialog appears.
3. Click the
Print button to open the E-Forms page, which will allow the selection of a document to be printed. For more information, see
Viewing E-Forms.
Note:
Tags in the document that are sourced from Beneficiary information will use the Beneficiary record selected to populate those tags.
4. Click Add. The SWP Details dialog appears.
5. Enter a Description for the new SWP.
6. Select a Status from the list. Not available when entering a new record.
7. Click the Verified By Search button to open the Advisor search dialog to select the advisor verifying the standing order.
8. To view notes related to the SWP, click Notes. The Account Notes Summary screen appears. The Notes button will only be enabled when there is at least one note for the standing order record.
Note:
Notes will automatically be generated by the generate batch alert (overnight alerts) process when the account product is set to create a funding alert and any of the funding allocations are insufficient to meet the payment.
Bank and Payment Information
9. Select a Currency from the list.
10. Select the Order Source from the list.
11. Select a bank account from the Bank-Transit-Account # list where the funds from the SWP arrangement will be deposited. Bank account information is maintained in the CIF.
12. In the Settlement Method list, select either EFT or Other Account.
13. If “Other Account” is selected as the settlement method, click the To Account # Find button to search for and select the account.
14. To set up withdrawal information, click Withdrawal Details. The SWP Withdrawal Details dialog appears. For more information about filling out the fields in this dialog, see the table at the end of this procedure.
15. Select whether the SWP standing order is to be flagged as Recommended or Non Recommended.
Frequency Information
16. Select either One Time or Recurring from the Frequency list.
17. If the SWP is a one time withdrawal, enter the withdrawal date in the Next Date field, or click button to select a date.
18. If an automated fee defined for the account product is to be waived, click the Waive Automated Fee check box.
19. If the SWP is recurring, do the following:
a) Select Recurring from the Frequency list. The Details button is enabled.
b) Click Details. The Frequency Details dialog appears.
20. If the SWP is to be set up as a weekly deposit, do the following:
a) Select the Weekly option button.
b) Enter the weekly intervals in the Every text box. For example, if the frequency is to be every 2nd week, enter 2.
c) Click the day of the week check box for the day the deposit is processed.
21. If the SWP is to be set up as a monthly deposit, do the following:
a) Select the Monthly option button.
b) Enter the monthly intervals in the Every text box. For example, enter 1 for monthly, 3 for quarterly, 6 for semi-annual or 12 for annual.
c) Enter the day of the month in the Day 1 text box when money is to be automatically deposited.
d) If there is another day of the month for an additional deposit, enter the day in the Day 2 text box.
22. Click Save. SWP information is saved and you are returned to the SWP Detail dialog with your new SWP information appearing in the Interval field.
Funding Information
You must enter funding information to indicate which investments will be sold to fund the payment.
23. After an investment has been selected, do one of the following:
• To enter the amount of money to be withdrawn from an investment, click Dollar, then enter the amount in the field.
• To enter a percentage of the client's withdrawal that is to be allocated to the investment, click Percent, then enter percentage in the field.
24. Select an Investment Status from the list.
25. To edit an existing investment, click Edit.
26. To remove an investment, click Cancel.
27. Click Save. The new SWP is added to the system.
SWP Withdrawal Details dialog
Use this dialog to enter amounts and tax information.
| |
|---|
W/D Reason | Select a withdrawal reason from the list. |
W/D Type | Select a type of payment transaction from the list. Options vary depending on the type of account. |
Specified Amt. | Enter the dollar amount if the W/D Type is Gross or Net. If W/D Type is Specified Gross, the amount entered should be before taxes. If W/D Type is Specified Net, the amount entered should be after taxes. |
Index Rate | If the W/D type is “Indexed (RRIF & PRIF)”, enter the percentage of increase of the specified amount in the Index Rate field. |
Tax Options | If you want to withhold additional tax or a specified tax, select from the Tax options list: • Default Tax Rate - Uses the tax rates from the tax table in
Open Administrator. • Specified Tax - Specified tax amount or percent. • Additional Tax - Specified tax amount or percent plus the default tax. |
Tax Type | If either Specified Tax or Additional Tax is the default tax option, select either Dollars or Percentage as a tax type, then enter either the dollar amount or the percentage to be charged against the payment in one of the Fed tax fields. |
CalculatePymt | Click button to calculate the systematic withdrawal payment based on the annual minimum payment divided by the number of payments remaining in the current year and the frequency. |
Save | Saves withholding tax information and returns you to the SWP Detail screen with the Gross and Net fields filled in. |
Cancel | Cancels all changes made to the screen and returns you to the SWP Detail screen. |