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How to properly record an IRA account with a Guaranteed Withdrawal Balance.

Ever since I opened up my retirement IRA account I was manually entering in the current price of my IRA which fluctuated based on the Market. There is no download function which is why I just update my holdings in Quicken manually every so often.

After so many years I discovered that I have a Guaranteed Withdrawal Balance (GWB) which is like $100,000.00 higher than what I was entering in Quicken known as Total Death Benefit (TDB). The TDB fluctuates on Market conditions and obviously has taking a beating in the last few months.

So I have a few questions for the experts.

1. Is the GWB what I will draw from when I retire and not the TDB amount?
2. Am I correct that the TDB is what my beneficiary will receive if I die first? A lump sum perhaps or not?
3. While the TDB has gone done in the past few months why hasn't the GWB gone down proportionally?
4. I've always used the TDB to record my holdings in Quicken thinking that was what I would draw upon when I retire. Have I been wrong all these years? Should I change my holdings in Quicken to the value of the GWB?

Any other info on what these two amounts are will be greatly appreciated.

Best Answer

Answers

  • streetwolf
    streetwolf Member ✭✭
    It's labeled as Annuity Type: IRA
  • streetwolf
    streetwolf Member ✭✭
    It appears the GWB is what I should enter in Quicken according to the guy who manages my account. Evidently I picked the right kind of IRA for retirement. I was told the GWB and TDB don't have a relationship. However if the TDB falls under $1.00 I think I'm screwed.

    So I deleted the account from Quicken and created a new traditional IRA account with no ticket symbols since they are only for TDB and we all plan to live forever 😷. If the GWB amount changes I will just update it accordingly.

    I should have taken some finance course when I was in college many moons ago.
  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Yes - as I mentioned above - I think the GWB is what you should be tracking.

    Good luck with that "plan" - I am just hoping I live long enough to be able to golf again!!

    Take care & stay safe!

    Frankx


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