Transfer and Payout
Performing an Investment Transfer and Payout (IL200XFER)
In some cases an investor may want to transfer a portion of an investment to another established investment or a new investment, while withdrawing the remainder. This is the purpose of Transfer and Payout. The Transfer and Payout function enables you to specify the portions of an investment to be used for each purpose. Investments receiving transferred funds will typically be demand notes, as most term investment notes cannot receive additional contributions.
To perform the transfer and payout:
- From the DDI Connect main menu, double-click Financial Services
- Double-click Investments
- Double-click Transactions
- Double-click 200 Transfer and Payout. You will see this screen:
The first step is to select or create the investment that you are going to transfer TO. If you are transferring to an existing investment, you can click the list or the binocular icon to search for the investment you are transferring to. If you are adding a new investment, click the New icon to launch the Investment Add screen:
If you need information on how to add an investment, reference this page: Adding an Investment
Once you have added the new investment, the system will populate that portion of the screen:
You will now select the investment that you are transferring FROM. You can type in the investment number, or you can click either the list icon or the binoculars to search for the investment you are transferring. Once you have located the investment, click Find. The system will now populate that portion of the screen:
The fields in the bottom portion of the screen have also become active for editing:
The following fields are available on this screen:
| Field | Description |
|---|---|
| Apply penalty | If selected, the system will apply the calculated penalty to the transfer and payout. If your organization has elected to allow qualified users to override the calculated penalty amount and if the user performing the transfer/payout has the required security settings, they can opt to override the calculated penalty in the Penalty field below. Otherwise, the system calculated penalty will remain |
| Interest | Click the drop down arrow to select the interest handling method (accrue, transfer or pay) |
| Pay via | Click the drop down to select the payment method to be used for any amounts being paid out |
| Principal (Transfer and Payout amounts | These fields display the principal amounts to be transferred or paid out |
| +Interest (Transfer and Payout amounts | These fields display the interest amounts to be transferred or paid out |
| -Penalty (Transfer and Payout amounts | These fields display the penalty amounts to be applied to the transfer and/or the payout |
| -Withhold (Transfer and Payout amounts | If your organization is configured to automatically withhold amounts when an investor's social security or tax ID field is blank, the system will display the withholding amounts here for the transfer and/or the payout |
| Total (Transfer and Payout amounts | Displays the total amount to be transferred and/or the total amount to be paid out |
| Taxable (Transfer and Payout amounts | If any portion of the transfer and/or the payout is taxable, the taxable amounts will be displayed in these fields |
If you click the MODE button on the toolbar, the system will place your cursor in the Total field. If you enter the total amount to be transferred and/or paid out, the system will automatically update any other applicable fields.
When you have entered the information, click Save to process the transfer and/or the payout. If the transfer succeeds, you will see this message:
Click OK. You will be returned to the Investment Transfer and Payout screen.
