Retirement Distributions Planner (Screen Inputs and General)

[Kathleen Reynolds]

#3388

 

There are a few pieces of information the software needs to calculate the required minimum distributions:

• Year of Analysis: Enter the year to begin the analysis.
• Type of Plan: The software can handle illustrations for a few different types of plans. Click here for more information about them.
• Year of First Required Distribution: In most cases, the software will fill this value in for you and there’s no need for you to try to enter it. For some plans, however, you need to specify when the distributions begin. Click here for more information.
• Plan Balance: Enter the plan balance as of the end of the year prior to the First Year of Analysis.
• Expected Plan Growth:  Enter the expected annual percent increase of the plan. The Expected Plan Growth is only used for projections.
• Is there a Designated Beneficiary? The required minimum distribution requirement can be significantly affected by the presence of a beneficiary – particularly after the projected death of the owner.
• Owner’s Birth Date: Enter the owner’s birth date. Note that this can affect when the required minimum distributions begin. If the owner is born later in the year, their first required minimum distribution may not occur until the year he or she reaches age 71. For “Inherited IRAs” enter the date of birth for the deceased plan owner
• Beneficiary’s Birth Date: Enter the beneficiary’s birth date. In many cases, this birth date is not relevant to the calculations while the owner is alive. However, it is always relevant for projecting what happens after the death of the owner. Enter the correct date, and the program will make sure it is used appropriately in the calculations.
• Beneficiary is Spouse? The required minimum distribution calculations during lifetime are different for spousal beneficiaries than for non-spousal. After the owner’s death, spousal beneficiaries are treated differently than non-spousal. Click here to see a discussion of how having a spousal beneficiary can affect the calculations.
• Assume Death Occurs? Check this box if you’d like to assume that the owner dies during the analysis or the original IRA owner died prior to the beginning of the analysis.
• The Beneficiary Information Button Click this button to enter years of death and indicate multiple beneficiaries. Click here for more information.

You can illustrate the effect of making contributions by clicking the Specify Contributions button. If you have specific distributions that you’d like to illustrate, click the Specify Distributions button. Whenever the specified distribution is less than the required minimum, the software will illustrate the required minimum distribution being taken.

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