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Update Lifetime Planner to Reflect Changes to IRA Handling due to SECURE Act

ScooterlamScooterlam SuperUser ✭✭✭✭✭
The SECURE Act, recently signed into law, makes some important changes to retirement plans.  There is one, maybe two changes found in the ACT that impact Lifetime Planner.   These changes only apply to the US Quicken version.

1.   The Act moves the age required to begin RMDs from 70½ to 72 - For sure a change needed in LTP.    Ensure that both current retirees and future retirees are considered in the update.

2.   The Act allows IRA contributions after 70½ - Maybe a change needed in LTP?  I haven't yet tested if there are age limitations imposed in Quicken re: contributions.

Are there other parts of Quicken impacted?  Tax Planner?

Please vote!
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Comments

  • HownowHownow Member ✭✭
    A must do update
  • pambatespambates Member
    It's disgusting that they are waiting till next year to do this.
  • BoatnmaniacBoatnmaniac SuperUser ✭✭✭✭
    pambates said:
    It's disgusting that they are waiting till next year to do this.
    Do you know something we don't know?  I've seen nothing about if/when these changes will be made in Quicken.  Quicken is not alone on this matter...many of the online RMD calculators have not yet been updated, as well.
    BTW, if you haven't yet already voted for this suggested product improvement above, please do so.  The Quicken Team does review these improvement ideas and the more people who vote for an idea the more likely it gets put into their product development plan and prioritized.
    (QW Premier Subscription: R31.5 on Windows 10)
  • ScooterlamScooterlam SuperUser ✭✭✭✭✭
    I suspect "next year" refers to the 2021 tax year when new life expectancy tables, proposed by the IRS and currently awaiting approval, would be used..  Approval by whom and by when exactly, escapes me.  I found few details searching online, unfortunately. Anyone have an update?

    So ... Quicken may be waiting until the new life expectancy tables are official before any changes are made to LTP.   That would be understandable and prudent.   I do hope this is on their radar screen with or without an Idea thread!    Nonetheless, please vote!

    For a deeper dive, I found the following Kitces article interesting on the subject, albeit 11 months old.

    https://www.kitces.com/blog/irs-proposes-new-rmd-life-expectancy-tables-to-begin-in-2021/

    In the article, was interesting to read this: 

    "
    Specifically, according to data provided by the IRS, of the Americans who are required to take distributions from retirement accounts, only roughly 20% are taking no more than the minimum required. Which means that the remaining 80% are taking more than the required minimum, thus making any decreases in RMDs a moot point."

    YMMV in your own retirement plan.  So maybe for most LTP users it is also a moot point?  That is no or little affect on the plans ending balance?

    But despite the above quote, I would still expect Quicken to timely update the model when new tables are approved.
  • artgartg Member ✭✭✭
    I'd like to join this discussion and add my wish that Quicken updates the LTP to reflect the changes in the SECURE Act. In fact the age (70.5-72.0) change should take place immediately. Any changes to the RMD (at age 72) such as going from 3.91 to 3.67 percent (I think) could/should just be part of a normal update. Maybe this is too much wishful thinking but the truth of the matter is that I just don't think there's enough of us that see the value of the LTP tool. I've written about this before but the LTP right along with the Tax Center are, in my opinion only, essential tools if used properly.
  • karrob2karrob2 Member ✭✭
    I totally agree, it is disgusting that Quicken has not seen fit to updated their program to reflect the SECURE Act. It could be as simple as letting an person selected the age at which they want to start taking their RMD - 70.5, 71 or age 72. Currently Quicken is useless to me for tax planning. If it is not updated by January 2021 I will find a money management program that has more respect for its users.
  • BoatnmaniacBoatnmaniac SuperUser ✭✭✭✭
    karrob2 said:
    I totally agree, it is disgusting that Quicken has not seen fit to updated their program to reflect the SECURE Act. It could be as simple as letting an person selected the age at which they want to start taking their RMD - 70.5, 71 or age 72. Currently Quicken is useless to me for tax planning. If it is not updated by January 2021 I will find a money management program that has more respect for its users.
    I'm curious why you feel LTP is a good tool for tax planning.  That is not the function of LTP as it lacks the detailed preciseness and granularity needed for tax planning.  The purpose of LTP is to provide a long-term estimation of how well our financial assets will last us through our lives based upon many different forward looking assumptions.  It takes no historical data into account.  Simply stated, LTP is not the best tool for doing tax planning. 
    Far better tools for tax planning are Tax Planner and the tax reports.  And these tools will capture RMDs for the year and calculate the tax impact provided Reminders are set up for the RMD distributions.
    (QW Premier Subscription: R31.5 on Windows 10)
  • Ben12Ben12 Member ✭✭
    New age for required minimum distributions is 72 not 70.5
  • Quicken_TykaQuicken_Tyka Moderator mod
    Hello @Ben12

    Thank you for taking the time to visit the Community to post your question.

    I have moved your post to the ongoing Idea thread to update the Lifetime planner.

    Be sure to navigate to the top of this post and click the up arrow to add your vote!


    Ideas are reviewed by our development team to see what people would like to be available in the future.

    Thank you,

    -Quicken Tyka

    ~~~***~~~
  • BoatnmaniacBoatnmaniac SuperUser ✭✭✭✭
    It looks like perhaps another part of LTP and/or the Help for annual contribution limits for retirement plans might need to be updated:  https://community.quicken.com/discussion/comment/20135691#Comment_20135691.
    (QW Premier Subscription: R31.5 on Windows 10)
  • luce1234luce1234 Member
    I have been anxiously awaiting this for a long time. Quicken please get this update taken care of. I am just turning 70 and it really messes up my LTP planning. I don't intend to start distributions until 72.
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