Compliance March 14, 2025

Deadline for Retirees Taking Their First RMDs is April 1

The IRS rule applies to all traditional IRA owners and most participants in workplace retirement plans.

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Most retirees who turned 73 last year must begin withdrawing their first required minimum distribution from their retirement plan by April 1, per Internal Revenue Service rules. In the following years, RMDs must be taken by Dec. 31.

The RMD rule applies to owners of traditional, Simplified Employee Pension, and Savings Incentive Match Plan for Employees IRAs. It also applies to participants in 401(k), 403(b) and 457(b) plans, with Roth IRA participants exempt. Although RMDs are usually taken by the end of the year, retirees who reached the age of 73 in 2024 are allowed to delay their first one until April 1.

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However, the IRS is reminding retirees who take their first distribution April 1 that they must also take their second RMD before the end of the year, and that they are both taxable in 2025. Additionally, IRA trustees are required to either notify IRA owners what their RMD is or offer to calculate the distribution amount.

According to the IRS, the RMD is calculated by dividing the account balance as of the end of the immediately preceding calendar year by the distribution period from the IRS’s “Uniform Lifetime Table.” The IRS also provides RMD worksheets to help retirees calculate the RMD.

For those taking a 2024 required minimum distribution due April 1, the IRS suggests consulting the life expectancy tables in appendix B of publication 590‑B, Distributions from IRAs. The IRS notes that Table III shows that the RMD for someone who is 73 years old in 2024 is typically based on a 26.5-year distribution period and that the balance as of Dec. 31, 2023, should be divided by 26.5 to calculate the 2024 RMD.

Products March 13, 2025

Product and Service Launches – 3/13/25

Apollo, Athene and Motive Partners purchase a guaranteed income provider; Capital Group launches 8 model ETF portfolios; Lane42 Investment Partners launches as alternative asset management firm and more.

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Apollo, Athene, Motive Partners Purchase Guaranteed Lifetime Income Solution

Three firms—Apollo Global Management Inc., Athene Annuity and Life Co., and Motive Capital Management LLC—announced the purchase of Advantage Retirement Solutions LLC, a guaranteed lifetime income solutions and technology provider for defined contribution plans.

ARS offers a multi-carrier technology, Lifetime Income Builder, that enables guaranteed lifetime income to fit into defined contribution plans, including directly into target-date-fund products.

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The investment in ARS was made by the acquisition of all outstanding shares by a new entity owned by Athene and funds advised by Motive Partners, according to the buyers’ announcement. ARS will continue to operate independently as it seeks to scale its offerings across the DC ecosystem.

The Lifetime Income Builder technology is currently used in the State Street GTC Retirement Income Builder Series, sponsored by Global Trust Co., which is available across several recordkeeping platforms. Lifetime Income Builder includes annuity guarantees backed by multiple insurers within a TDF construct.

Capital Group Launches 8 Active ETF Model Portfolios

Capital Group has launched eight active model portfolios comprising its all-active exchange-traded funds. The launch comes in response to the growing trend of financial professionals seeking active ETF model solutions, according to Capital Group.

The company offers 22 ETFs in the U.S., sold by more than 35,000 financial advisers and composed of more than $53 billion in assets under management.

Details of the full suite of Capital Group ETFs can be found here, along with details on the range of model portfolio solutions here.

Lane42 Investment Partners Launches as Alternative Asset Management Firm

Lane42 Investment Partners LLC announced its launch as an alternative asset management firm focused on pursuing compelling opportunities in both public and private markets across asset classes.

Lane42 intends to provide flexible debt and equity capital solutions to both public and private companies, while also pursuing investments across liquid markets and through multiple market and economic cycles.

The firm was founded by Scott Graves, who will serve as its CEO and CIO. It will be headquartered in Los Angeles, with a presence in New York. Graves brings more than 30 years of experience across public and private credit and equity alternative investment strategies.

TCW Launches Emerging Markets Equity Fund

The TCW Group Inc., a global asset management firm, announced the TCW White Oak Emerging Markets Equity Fund. The fund is an actively managed mutual fund that seeks to provide long-term capital appreciation by investing in a broad range of equity securities from emerging market economies.

The TCW White Oak Emerging Markets Equity Fund is sub-advised by White Oak Capital Partners Pte. Ltd.

The fund invests primarily in a set of emerging markets stocks beyond traditional large-cap companies to include small- and mid-caps. The fund is managed by Prashant Khemka, Manoj Garg and Wen Loong Lim.

Sun Life US Partners With Workday Wellness to Enhance Benefits Offerings

Sun Life U.S., a provider of employee benefits and human resource technology solutions, is now a strategic Workday Wellness partner. Workday Wellness is an AI-powered solution that aims to improve the benefits management experience by offering employers a “real-time view” into the benefits and wellness programs that employees use and value the most.

Sun Life has developed a portfolio of data connection solutions, known as Sun Life Link, which automate benefit data exchanges to and from Sun Life employer clients through the Workday platform. The automation of these tasks aims to free up HR teams so they can focus on the projects and aspects of their job that “really matter to them.”

As a Workday Wellness partner, Sun Life is also developing additional application programming interfaces that enhance connectivity for employers by integrating more employee data for functions that include plan set-up; enrollment and eligibility; absence management; and billing.

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