IRA Required Minimum Withdrawals

I suspect you have addressed this question more than once but I have failed to find the answer.
The model results show constant withdrawals from IRA accounts but, if I understand correctly, the required minimum withdrawals increase with age and would eventually (within the life expectancy assumption) exceed the constant amounts. Is this in fact the case?
If the model is underestimating the required withdrawals, isn't the projection getting off the track? Actual income will be higher, taxes higher, retirement accounts lower and (if the distributions are saved rather than spent) other assets accounts higher?


dan royer's picture

The program will always calculate RMD. So if you see the withdrawals as smooth all the way down, then you are over the RMD amount. If you start your first smooth withdraw at age 75 for example, you'll see the program calculate the RMD from 70-74.


You can also create a scenario where you receive RMD's only each year by entering age 100 as the first year of smooth withdrawals (or whatever age you've set as your maximum age of life).

dan royer's picture

Or indicate that you want to spend 0% of non-annuitized assets. That will RMD it all, even the last year.