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?
Tue, 12/05/2017 - 14:04
The program will always
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.
Sat, 12/09/2017 - 23:11
You can also create a
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).
Sun, 12/10/2017 - 08:24
Or indicate that you want to
Or indicate that you want to spend 0% of non-annuitized assets. That will RMD it all, even the last year.
Mon, 04/27/2020 - 21:08
The SECURE Act allows the RMD
The SECURE Act allows the RMD for 2020 to be skipped. Is there a plan to update Maxifi &/or ESPlanner to allow this. Maxifi does not currently allow a zero RMD for 2020. I tried this by entering a later age for the start of smooth withfdrawls but the report showed my RMD begin taken in 2020
Mon, 04/27/2020 - 21:16
I have not seen such a plan
I have not seen such a plan from the engineering team James. Sorry. But I think it probably won't be adjusted for this year. If I find out differently, I'll let you know.
Tue, 04/28/2020 - 00:23
Dan, How would you suggest
Dan, How would you suggest modeling not taking the RMD. It's complicated because the RMD incures taxes so just adding a non taxable special receipt won't offset the taxes. It would probably require lost of separate calculations to increase the non taxable reciept to include the taxes. Have I missed something?
Thanks. You did say that neither Maxifi or Esplanner are scheduled to include this 1 year exception. Obviously if you don't do it soon it will be of no value since that part of the SECURE act expires at year end