About Investment Club Withdrawals
When a member wants to withdraw some or all of his club account, it is important that you handle this the correct way. There are tax and accounting issues associated with a withdrawal.
YOU SHOULD NEVER ENTER A WITHDRAWAL OR TELL A MEMBER WHAT THEY ARE OWED WITHOUT KNOWING YOUR BIVIO RECORDS ARE ACCURATE AND UP TO DATE AND YOU HAVE FOLLOWED THE STEPS OUTLINED BELOW.
You need to follow the correct steps to make sure the member is paid the correct amount, he is given the correct information he'll need for his taxes and your club records are updated correctly so all the remaining members accounting is correct.
Do not rush into paying a member withdrawal. If you do it wrong, it is extremely difficult to correct. Please ask questions of firstname.lastname@example.org if you are unsure of something.
Most club treasurers only have to handle withdrawals infrequently so they may not remember exactly what they need to do. We'd rather spend the time with you to make sure you get it right ahead of time than have to try and figure out if there's a way to help you get out of a problem after the fact.
This presentation gives you a full overview of all the things that need to be considered when a member requests a withdrawal. It also shows how you make the bivio entries you need to properly record the withdrawal.
You can download a PDF of the presentation here.
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