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Accounts with Required Minimum Distributions (RMD)

Glen Raggio

At present I am receiving income from 2 Traditional IRA's. One is an inherited with mandatory withdrawals within ten years of date of death. The other is IRA is based upon the year-end value divided by the IRS Uniform Lifetime Table.

I propose that the "Add Account" tab include 1) date of birth or a check box to indicate the commitment for withdrawal or 2) date of death; with a withdrawals on a 10-year time frame. Withdrawal amounts are variable.

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Reviewed

Status: Reviewed

Comments

NotACPA

The withdrawals from an inherited IRA are a LOT more complicated than just the date of death. The relationship of you to the deceased, and the age of the deceased also are significant.

And for your own IRA, the balance at the end of the prior year is the "multiplier" for the IRA Uniform Lifetime table. So that RMD changes every year. It's not just the date that matters.

Both calculations could (aren't currently) be better handled in the "Lifetime Planner" rather than in the Account setup … so I'd vote against this Idea if that were possible.

NotACPA

Apparently, RMDs ARE already included in the calculations for the Lifetime Planner.

Chris_QPW

They are in there, but your first statement about them not being correct still holds with the correct year not being updated. I'm also no sure if the tables are properly updated, and as for the rules for inheritance, I haven't checked, but I doubt it has them.

But yes, the Lifetime Planner is where this should be done.