Specify Distributions

[Kathleen Reynolds]

#3252

Use the Enter Desired Plan Distributions window to enter planned future distributions or withdrawals already taken during the current year or desired future distributions. The program will use the higher of the entered desired distributions or the required minimum distributions. For example, your clients might need higher distributions to account for living expenses. You could model the analysis so the entire fund is distributed in one year or over a period of years. The window allows you to enter up to five planned future distribution amounts for a period of years.

There are two ways of entering data on this screen:

• On the top panel, Enter Anticipated Distributions:
• Enter the Annual Amount of the withdrawal.
• In the Growth Rate box, enter the annual percent increase of each distribution.
• Enter the First Year that each distribution will be made.
• Enter the Last Year that each distribution will be made.

Or:

• On the bottom panel, Enter distributions already taken during (first year of analysis):
• Enter the Amount of each early distribution and other withdrawals that have already been made during the first year of analysis.
• In the Date box, enter the date applicable. The date must be during the first year of analysis.
• If “Applies to RMD” is chosen, the amount is shown as part of the first year’s distribution.
• If “Does Not Apply to RMD” is chosen, that amount will reduce the balance in the account, but will NOT be displayed in the distributions column.

Click the Add button to enter the distribution onto the list of distributions or withdrawals already taken during the first year.

To remove a distribution already added, select it from the list and click Delete.

The program always distributes at least the required minimum distribution. If you enter a distribution that is larger than the fund balance, the program distributes the balance. Also, if you are going to enter distributions that occur before the owner’s 59½ year, you may want to use the Pre-59½ Distributions Calculator.

Note: All plan fund activity takes place at the beginning of the year. This includes required minimum distributions, any specified distributions, and any contributions. If you prefer, you can have all fund activity take place at the end of each year. Also, the program uses these distributions whenever they are greater than the calculated minimum distribution. The program will not allow the distributions to drop below the calculated minimum.

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