Details (General Client Information)

[Kathleen Reynolds]

#3633

For information regarding the inputs, please see below the screenshot.

General Information

• Analysis Year: Enter the first year of the analysis. Generally, this is the current year.
• Marital Status: Select between “Married” or “Single”. This selection will impact the several areas of the program. A married client will have the ability to enter spouse specific IRA accounts, as well as beneficiary designations for each spouse. In addition, this selection will impact the tax calculations. If you select “Married”, joint filing status will be used for all the years that both spouses are alive. In years after the first death, the surviving spouse’s calculations will be based off single filing status. If “Single” is selected, the filing status will be single. In addition, when the Single is used, the personal exemptions will be set to 1. For Married clients, the personal exemptions will be 2. All non-spousal beneficiaries are determined to use Single as the status, with 1 exemption.
• Inflation Rate: The inflation rate will be used to modify the currently released tax brackets. This rate will also be used to determine Medicare Premiums (IRMAA) based off the last released IRS figure. In addition, if you add income, expense or contribution streams, the option to use inflation for future years will use this rate. This will serve as a “growth” of the stream in a given year. Please see more regarding information on inflation in each of those sections.
• State Tax Rate: If there is a state income tax, enter the rate. This rate will be applied to distributions from the IRA accounts, for all participants. Since each state has specific rules for Social Security, the state tax rate will not be applied to Federal taxable social security benefits.
• Use Global Growth Rates: The program will illustrate 3 sets of growth rates: a) Pre-Retirement Growth b) Retirement Growth c) After Death Growth. If you select “Yes” for the “Use Global Rates” input, these rates will be universally applied to each asset type. If you select “No”, then each asset type will have its unique set of 3 growth rates.
• Timing: Select between Begin and Ending. If you select Ending, then growth will be applied after contributions and withdrawals are done in a given year.
• Number of Analysis Years: Select between entering a manual number and based on the youngest life expectancy of all owners and beneficiaries. Note – the life expectancy may or may not match up with LE of RMDs, it could be off based on rules of RMD (10-year rule etc.). If in doubt, you can always enter your own number of years.
• Number of Years: This input would appear if you selected to enter a number for the analysis years. If you choose to use the life expectancy, then a label will illustrate how many years to project the analysis.
• Pre-Retirement Growth: When “Use Global Rates” is set to “Yes”, this input will be displayed in the “General Information” section. This input will be applied to all asset types for years prior to retirement (for both spouses if applicable).
• Retirement Growth: When “Use Global Rates” is set to “Yes”, this input will be displayed in the “General Information” section. This input will be applied to all asset types for years in retirement, through the death year (for both spouses if applicable). If the surviving spouse is the beneficiary of the first to die, then this rate will be used till the death of the surviving spouse.
• After Death Growth: When “Use Global Rates” is set to “Yes”, this input will be displayed in the “General Information” section. This input will be applied to all asset types for years after the death of the plan owner/spouse. This is the rate during the inherited timeframe for non-spousal beneficiaries.

Client Information

• Name: Enter the first name of each client.
• Birthdate: Enter a valid birthdate. The application will allow for birthdates starting in 1920. The fields will autocorrect if you enter an invalid date, including Leap year calculations.
• Retirement Age: This input is used for two purposes:
  • This age will determine when the “Retirement Growth” should be used for an account holder. If the owner is already retired prior to the start of the analysis, the analysis will skip the “Pre-Retirement Growth” and use the “Retirement Growth” starting in year one.
  • Required Minimum Distribution rules allow for owners to postpone the initial required date. If the owner retires after the age of 72, it will push the required distributions to the year after retirement.
• Death Year Selection: You can choose to have the application calculate the projected death year based off §1.401(a)(9). That table will return a life expectancy which will be truncated to the nearest whole number, and then added to the analysis start year. For example, if the start year is 2021, and the age of the plan owner is 63, then the life expectancy is 24.5, resulting in a death year at age 87. The calculated year will always produce a death that occurs in the future. If you are running an analysis where the plan owner has previously died, then you should select “Enter Year”.
• Death Year: If you selected to calculate the death year, then the input will be disabled, and will display the year of projected death based off §1.401(a)(9). If you choose not to calculate the death year, the input field will be enabled, which will allow you to enter a year of death as early as 2002. NOTE: All deaths are assumed to occur at the end of the year (12/31/YYYY).
• Beneficiary: Select between Spouse (Married Clients), Non-spousal, or Estate for the beneficiary.
• Spousal Rollover: For Married Clients, if the Beneficiary for the first to die is set to Spouse, an election to Rollover is shown. If Rollover occurs, then at time of Rollover, the account will be Rolled to the Surviving Spouse’s account. If Rollover does not occur, the owner’s account remains intact after death and RMD rules are applied based on the spouse (assuming the spouse is the beneficiary).
• Rollover Year: For Married Clients, if the Beneficiary for the first to die is set to Spouse, and Rollover is selected, an input will appear that will allow the user to enter the year of rollover. Most common is to rollover in the same year of death. A rollover year input will be limited to the death year of both spouses.
• Percentages to Spouse: For Married Clients, if the Beneficiary for the first to die is set to Spouse. This input will appear for the first to die. This input will allow for multiple beneficiaries at the time of first death. For additional beneficiaries, enter a number less than 100% and enter the additional beneficiaries (non-spousal) on the Beneficiary tab. NOTE: If you set this value to less than 100% and do not designate additional non-spousal beneficiaries, then the portion not going to the surviving spouse will be designated going to “Estate”, which has unique RMD rules.

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