Withdrawals - Required Minimum Distribution
Withdrawals - Required Minimum Distribution
Withdrawals - Required Minimum Distribution
Product Design Case Study
Duration : 4-5 weeks
My Role : End to End
In line with my NDA, I tweaked or omitted certain details in this case study- gotta keep things confidential while still telling a great story!
In line with my NDA, I tweaked or omitted certain details in this case study- gotta keep things confidential while still telling a great story!
In line with my NDA, I tweaked or omitted certain details in this case study- gotta keep things confidential while still telling a great story!
Overview
The Return Client Experience (RCE) for Withdrawals was designed to give customers full control over their finances, making the process seamless and self-sufficient.
The Return Client Experience (RCE) for Withdrawals was designed to give customers full control over their finances, making the process seamless and self-sufficient.
On their account page, customers can easily select where their funds come from and where they go—putting them in full control of their transactions.
On their account page, customers can easily select where their funds come from and where they go—putting them in full control of their transactions.
In this case study, I'll highlight key withdrawal use cases I worked on, with a special focus on the Required Minimum Distribution (RMD) scenario.
In this case study, I'll highlight key withdrawal use cases I worked on, with a special focus on the Required Minimum Distribution (RMD) scenario.
Click to go through a small prototype for recurring withdrawals to understand withdrawals
Select deposit acount
Help
Log Out
Withdraw from
Raise Cash
Account *1234
Balance: $100,000
Change
Add Bank Account
Schwab Individual *225
Balance: $62,000.12
Morgan Stanley Joint *881
Balance: $45,000.12
Wells Fargo Savings *002
Balance: $12,000.12
Back
Fund Later
next
The juicy bit is still left- continue reading!
Case Study
Clients move money for all sorts of reasons, but one of the most intricate and thought-provoking cases was the Required Minimum Distribution (RMD)—a challenge that demanded deeper problem-solving and strategic thinking.
Clients move money for all sorts of reasons, but one of the most intricate and thought-provoking cases was the Required Minimum Distribution (RMD)—a challenge that demanded deeper problem-solving and strategic thinking.
What is RMD?
A mandatory yearly withdrawal from retirement accounts (such as 401(k)s and IRAs) after a certain age. The amount of the RMD is based on the account balance and the individual’s life expectancy.
What is RMD?
A mandatory yearly withdrawal from retirement accounts (such as 401(k)s and IRAs) after a certain age. The amount of the RMD is based on the account balance and the individual’s life expectancy.
What is RMD?
A mandatory yearly withdrawal from retirement accounts (such as 401(k)s and IRAs) after a certain age. The amount of the RMD is based on the account balance and the individual’s life expectancy.
Why does it matter?
Ensures retirement savings are taxed as required
Why does it matter?
Ensures retirement savings are taxed as required
Why does it matter?
Ensures retirement savings are taxed as required
What if ignored?
Leads to hefty penalties, making proper management crucial.
What if ignored?
Leads to hefty penalties, making proper management crucial.
What if ignored?
Leads to hefty penalties, making proper management crucial.
Let’s take a quick dive into a prototype to better visualize my work and understand its limitations.
In this version, users are required to withdraw their entire Required Minimum Distribution (RMD) from a single designated account.
Note: RMDs can be withdrawn from one or multiple accounts.
However, in this prototype, users are required to withdraw their full RMD amount from a single designated account as a system constraint.
Let’s take a quick dive into a prototype to better visualize my work and understand its limitations.
In this version, users are required to withdraw their entire Required Minimum Distribution (RMD) from a single designated account.
Note: RMDs can be withdrawn from one or multiple accounts.
However, in this prototype, users are required to withdraw their full RMD amount from a single designated account as a system constraint.
Click to go through a small prototype to visualize the RMD withdrawal flow!
Select withdraw & deposit account
Help
Log Out
Withdraw from
Change
IRA Accounts
Traditional IRA *123
Balance: $100,000
Morgan Stanley Joint *881
Balance: $45,000.12
Add Bank Account
Bank Accounts
Embrace Checking *5655
Balance: $28,000.12
Embrace Savings *002
Balance: $12,000.12
Back
Fund Later
next
Required Minimum Distribution
$7,500
Total Amount to Withdraw by 12/31/2024
IRA Withdrawal Summary
Total Required Minimum Distributions
$25,000
Amount withdrawn (Year-to-date)
-$12,500
Scheduled withdrawals
-$5,000
Total amount to withdraw by 12/31/2024
$7,500
RMD Already Satisfied?
Limitations with the current model
While this model offers transparency to clients, it comes with limitations. For instance, it doesn’t account for inherited IRAs or cases where the previous year’s account balance is unavailable—both crucial for RMD compliance.
To address these gaps, SigFig proposed a new solution to its partner—a leading U.S.-based insurance company.
While this model offers transparency to clients, it comes with limitations. For instance, it doesn’t account for inherited IRAs or cases where the previous year’s account balance is unavailable—both crucial for RMD compliance.
To address these gaps, SigFig proposed a new solution to its partner—a leading U.S.-based insurance company.
Proposed Enhancement
Leveraging NFS’s RMD service via WealthScape could streamline RMD management by automating the process. Our goal is to activate RMD automation, allowing for flexible yearly adjustments to withdrawal totals. This would eliminate the need for manual interventions by the Ops team, making tasks like modifying specific withdrawals a thing of the past.
Leveraging NFS’s RMD service via WealthScape could streamline RMD management by automating the process. Our goal is to activate RMD automation, allowing for flexible yearly adjustments to withdrawal totals. This would eliminate the need for manual interventions by the Ops team, making tasks like modifying specific withdrawals a thing of the past.
If you prefer viewing this in Figma here is a link: Figma Link
Results
The proposed enhancements aimed to streamline the RMD process, making it more user-friendly and compliant with tax requirements.
By automating RMD calculations and withdrawals, the solution sought to reduce operational overhead and minimize the risk of user errors leading to tax penalties.
The design emphasized transparency and flexibility, catering to a range of user scenarios.
The proposed enhancements aimed to streamline the RMD process, making it more user-friendly and compliant with tax requirements.
By automating RMD calculations and withdrawals, the solution sought to reduce operational overhead and minimize the risk of user errors leading to tax penalties.
The design emphasized transparency and flexibility, catering to a range of user scenarios.
Let's Connect
Let's Connect
Let's Connect
Like what you saw? Don’t be a stranger—let’s talk design.
Like what you saw? Don’t be a stranger—let’s talk design.
Like what you saw? Don’t be a stranger—let’s talk design.
Contact me for full time roles, freelance projects or just to say Hi!
You can also contact me via
+91 8128452388
tanishabhanot@gmail.com
Contact me for full time roles, freelance projects or just to say Hi!
You can also contact me via
+91 8128452388
tanishabhanot@gmail.com
Contact me for full time roles, freelance projects or just to say Hi!
You can also contact me via
+91 8128452388
tanishabhanot@gmail.com