Lifetime Planner - IRA RMD

vanderrick

Version R21.17 Build 27.1.21.17. Need some way to draw down IRA into other investment account based on RMD. If, for example you sell a home, LTP will use the proceeds and not show a RMD from IRA. At least that I can figure. Should I set up the IRA distribution as "Other Income" maybe if I set up automatic distributions from the IRA? Suggestions wanted.

Robin

1st, check that your IRA is actually marked as 'Tax Deferred'. 2nd is your Age correct in the planner. 3rd is the planner using this IRA in the planner? I ask because it is possible to exclude specific accounts from the planner.

If those things are correct, I believe the Planner will first use up your taxable savings account before drawing from a tax deferred account to fund living expenses BUT regardless of taxable account balances will calculate and record a RMD each year you are 70.5 years or older. At least it does that on my model. If this isn't working for you, I'm not sure what else could be the issue.

In fact in my case it is a TOO aggressive with the RMD. It insists on an RMD on all tax deferred accounts. Even accounts that don't require an RMD such as Roth or tax deferred variable annuity.