How should plan consultants and advisors proceed?

The digital tool is meant to assist advisors in educating clients and speed the suitability and purchase process.

Clients should file the penalty tax form whether they made the distribution or not.

The biggest direct impact is on alimony, which will no longer be a deduction for the person paying it, and no longer have to be claimed as income by the person receiving it.

Low tax rates could provide conversion opportunities for clients.

Not everyone is happy about this development.

The industry won’t educate and manage, consumers won’t listen and most advisors won’t get involved.