IRA distribution at death

marc

In the lifetime planner, I have added a special one time expense (distribution) equal to the projected value of my ira at an assumed date of death. I have allocated the expense to the appropriate IRA. In the lifetime planner, the distribution appears under "Special Expenses" when it should be allicatead to and subtracted from the IRA balance.
Is this a bug in the program or is there another way to allocate the distribution?

Scooterlam

I think what you found is a bug if it is the same as what I found a while back -  that LTP does not respect the account assignment in Special Expenses, College Expenses or Home Purchase Expenses. 

LTP always funds these expenses from taxable accounts first, then funds from other sources, presumably tax deferred and roth.  My experience anyway.   Have a look at this link and vote on it if it's what you are seeing.  

https://community.quicken.com/discussion/7900745/lifetime-planner-idea-fix-account-assignment-for-special-college-expenses-future-homes

So in other words,  if you assigned a specific tax deferred account, such as an IRA, to fund a special expense, the LTP does not respect that.

Scooterlam

I think what you found is a bug if it is the same as what I found a while back -  that LTP does not respect the account assignment in Special Expenses, College Expenses or Home Purchase Expenses. 

LTP always funds these expenses from taxable accounts first, then funds from other sources, presumably tax deferred and roth.  My experience anyway.   Have a look at this link and vote on it if it's what you are seeing.  

https://community.quicken.com/discussion/7900745/lifetime-planner-idea-fix-account-assignment-for-special-college-expenses-future-homes

So in other words,  if you assigned a specific tax deferred account, such as an IRA, to fund a special expense, the LTP does not respect that.

marc

Thanks for verifying my suspicians. I had contacted support and they were clueless. However, they arranged a callback from level 2 support. I'm not optimistic. Perhaps this will accelarate consideration of fixing this.

Scooterlam

This feature, if it worked correctly, could be very interesting in optimizing withdrawal order....well not quite fully.  I would guess there would be a lot of utility for users when trying to optimize plan outcome given known future expenses and the ability to choose an account type to draw from..

Good luck with the Level 2 support.  If, during the call, you find any nuggets of wisdom,  please share it back with the community.

Unknown

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marc

Spoke with escalated support. Referred them to the link on this page which they found helpful. They are referring the problem to the development team which indicates that they now recognize the problem. No guarantee of a fix.