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TrustNet
SmartStart Module Overview

Build 1099-R for
Employee Benefit Accounts

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FUNCTION:
 

  TrustNet includes a series of programs that produce 1099-R forms for IRA accounts. These programs are based on having a single TrustNet account correspond to a single IRA owner.

Most of the time, when people use TrustNet for Employee Benefit accounts, they set up a TrustNet account for the entire portfolio, and enter related party information only for the participants who receive distributions.

The purpose of this SmartStart program is to review transaction history for the EB accounts and build a separate 1099-R form for each participant, rather than a single form for the entire account.

Another difference between this program and the standard version designed for IRAs is the handling of tax withholding amounts. For an IRA account, you would typically have separate transactions for the federal and state withholding. With multiple participants inside one account, that method could get confusing.

Most of our clients use the comment to give the amount of withholding (or loans deemed received) that goes with each distribution. When we set up the special Build program, we “tune” it to expect certain comment formats. The amounts from each comment are printed in the appropriate boxes on the 1099-R.

This comment method also produces a customer statement that is easier to read because everything about the distribution is printed together.

Once you run the special Build program for the EB accounts, you can finish the process using the other four standard 1099-R programs:
 
  • 1099-R Maintenance
  • 1099-R Report
  • Print Substitute 1099-R Forms
  • Export 1099-R for IRS
  We typically configure the system so you can have two separate 1099-R files – one for EBs and another for IRAs. This way, your review and production for these two areas are completely separate and could even be handled by different staff members.

BENEFITS:
 

   Build 1099-R for EB Accounts adds value to the core system by …
 
  • providing a practical way to accept pension plan accounts into the department, which can increase fee revenues.
     
  • leveraging the work you have done for distributions into an automated production of 1099-R forms.

PREREQUISITE MODULES:
 

 
  • 1099-R Module. This module is currently a standard part of TrustNet, but is licensed separately from TAMS.

COMPLEMENTARY MODULES:
 

 
  • Check Writing. Most of our clients who administer employee benefit accounts use this module to process checks for the participants. Transactions entered in Check Writing flow through to the daily and history transaction files and are ready to be consolidated on the 1099-R forms.
     
  • EB Recordkeeping Interface. If you have a source of electronic data from the Participant Accounting software or from your customer, we can write programs to import distribution information into the TrustNet Check Writing module. Please see the SmartStart module overview for more details.