Reregister Tax Split

Overview of IL209

Re-registration with a tax split usually becomes necessary when an investment owner is deceased during the current year. This can create a need for the principal and interest to be split into new investments under the beneficiaries’ master accounts. The tax burden created by the investment income - as well as any applicable penalties or withholdings - must also be divided equitably among the beneficiaries based on the owner’s date of death.

Re-registration with a tax split allows you to set up new master accounts for the re-registered investments, or to designate existing master accounts. You can arrange the split evenly, by percentage, or by dollar amount. The interface then provides a comprehensive breakdown of the split amounts in various categories (principal, interest, penalty, withholding).

Note: When performing an investment reregister transaction, the new investment(s) will be linked to the same pool as the original investment.

• From the DDI Connect main menu, double-click Financial Services
• Double-click Investments
• Double-click Transactions
• Double-click 209 Reregister Tax Split. You will see this screen:

First, modify the effective date field to be the correct date. You can type the date in mm/dd/yyyy format or click the calendar icon to locate the date.

Next you must locate the investment that you wish to perform the transaction against. You can key in the investment number and press enter, or click Find. You can also click the list icon to display a list of investments, or click the Search icon to locate the investment. Once you have located the investment, you will see the information populated:

In the Split field, click the drop down arrow and select the split type you wish to use. You can elect to split it evenly, by percent or by amount.

Click the Add button on the toolbar to add a new investment split:

The only field that is active is the New account field. You can key in the account ID here. You can also click the search icon to launch the Name/Address Inquiry screen, or click the New icon to create a new account. Once you have entered the account number, you will see this popup:

To proceed, click Yes. This will launch the Investment Add screen.

When you have finished entering the information, click Save. You will see this message:

Click OK. You will be returned to the Investment Tax Split screen:

At the bottom of the screen, the dollar amounts will update to reflect the split.

To add another split, click the Add button and repeat the steps above. The split will automatically adjust based on the split type you selected, until the entire investment amount has been divided.

When you are done, click Save. You will see this message:

Click OK. You will be returned to the Investment Tax Split screen.