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Illustrations of required distributions for non-spouse and inherited IRA beneficiaries.
Plan Profile
- Calculation year The year the analysis begins.
- Dec. 31 balance The plan balance as of the year end prior to the calculation year.
- Expected plan growth The growth rate you’d like to use to estimate how the plan will grow in future years. This is for illustration purposes only. The calculation has to be made each year based on the actual previous year end value.
- Plan type The illustration is for either IRA or Roth IRA plans.
- Deceased owner’s date of birth The owner’s date of birth can affect when the required minimum distributions begin and distribution options available to beneficiaries. If you are doing a calculation for the beneficiary of an inherited IRA, enter the date of birth for the original deceased IRA owner.
- Deceased owner’s year of death The year of death of the original IRA owner.
- Did the owner die prior to April 1? If the owner’s death occurs in the first quarter of the year after the year the owner reached RMD age, select “Yes”. This question will only be visible if death occurred in the year following the year the owner reached RMD age.
- Inherited IRA owner’s year of birth The annual life expectancy computation will use the inherited IRA owner’s age when determining the distribution required for eligible designated beneficiaries.
- Is Inherited IRA owner disabled or chronically ill For post 2019 deaths, beneficiaries who are disabled or chronically ill may take distributions over their life expectancy.
- Is Inherited IRA owner legal minor child of owner For post 2019 deaths, the IRA owner’s minor child may take distributions over their life expectancy up to age 21. At age 21, life expectancy distributions must continue and the 10-year rule applies.
- Illustrate multiple beneficiaries? Up to five non spouse beneficiaries can be illustrated.
- Were separate inherited IRA accounts established for each beneficiary by Dec. 31 of the year after death? Enter “Yes” if separate inherited IRA accounts were established by the deadline. In order for each beneficiary to take distributions based on their own situation, separate accounts need to be established by Dec 31 of the year after death. If separate accounts are not established by the deadline, distributions must be taken based on the beneficiary with the shortest payout.
- Illustrate inherited IRA owner’s death Only available for single beneficiary illustrations. Use this option for the beneficiary of an inherited IRA.
- Illustrate oldest inherited IRA owner’s death? If there are multiple Eligible Designated Beneficiaries and separate accounts are not established, death distributions depend on the death year of the oldest beneficiary.
- Do you want to use the 10-year rule?If the IRA owner died prior their Required Beginning Date, an Eligible Designated Beneficiary has the option of choosing the 10-year rule instead of a life expectancy payout.
- Illustrate 10 Year rule with equal payments with growth? For beneficiaries who are subject to the 10-year rule, distributions can be illustrated as equal payments over 10 years based on the expected plan growth rate entered.
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