Retirement Accounts


This folder has six tabs. The first solicits the current market values of assets held in your family’s retirement accounts at the end of last year. These amounts, just like Regular Assets, do not need to be updated through the year. Enter the amounts you had at the end of last year/beginning of the current year. The second tab asks about contributions to these accounts in the current year as well as in future years. The third tab considers withdrawals from retirement accounts (this age can’t be less than that age of last contribution that you set in the prior screen, so lower the age of last contribution as needed). Specify the age at which your families will begin withdrawing funds from their accounts, the share of their accounts (if any) they wish to annuitize at their initial withdrawal ages, and the share of their non-annuitized retirement account assets that they wish to spend. If you do not want to annuitize any retirement assets, just leave the amount to annuitize at 0% and the amount to spend at 100%.

If you wish to spend only the required minimum withdraw (RMD) throughout your life, you could indicate that you wish to spend not 100% but 0%. The program would thus impose the RMD on your withdraw amounts each year.

The program will adhere to your family's wishes about not spending their retirement account assets to the extent this doesn’t violate the government’s minimum distribution requirements. The program depletes employee tax-deferred retirement accounts first, employer tax-deferred retirement accounts second, and Roth IRA assets last because Roth IRA assets aren’t subject to minimum distribution requirements. But you can manually rearrange this order, making the Roth IRA first if you like. The program calculates minimum distribution requirements based on the new IRS Minimum Distribution Table. Note that the “Smooth Withdrawal” panel adheres to minimum distribution requirements, but it otherwise causes you to withdraw the same amount each year if that is possible by law. You can override the smooth withdraw in the next panel, “Special Withdrawal.”

If you enter Special Withdraws this does not add to the existing smooth withdraw amount, but rather replaces it.

This Special Withdrawal panel lets override smooth withdrawals, allowing you to specify non-smooth retirement account withdrawals. The program will smoothly withdrawal your retirement accounts per your specifications on the Smooth Withdrawals screen except in years that you specify special withdrawals on this screen or are forced to take larger than desired withdrawals due to minimum distribution requirements. Smoothing recommences after each special withdrawal or required minimum distribution. You might use the Special Withdrawal panel to ask for extra withdrawals as you might need them if you choose to delay Social Security.

If you have annuities that are not created by converting these retirement assets, enter them in the Pension and Annuities folder area.

The next tab in the Retirement Accounts Folder allows you to design any annuities that you and your spouse/partner may want to purchase when you start retirement account withdrawals. You can specify the share of the annuity to be paid to survivors, the number of years over which annuity payments are guaranteed, the growth of the annuity payment through time, and whether annuity payments will continue after the guarantee period.

For thus fixed annuity you are asked to specify its expected nominal rate of return. (This is the return apart from mortality.) If you have a variable annuity, provide a conservative estimate with regard to its average nominal rate of return.