Modelling Inherited Non-spousal IRA
I anticipate inheriting both a Regular IRA and a Roth IRA sometime in the future. I will end up with more than enough to live on, and I want to return the favor to my descendants by ensuring that I don't spend all of my retirement accounts before death, so that I also leave a bequest of IRAs to them.
I am modelling the Inherited Regular IRA as an Employer Contribution in the year I anticipate the inheritance. I did that to ensure that RMDs were calculated but my AGI not impacted. The Roth IRA is modeled as a Roth Contribution, even though the rules for Inherited Roth IRAs are enough different to make that problematic - I don't see a better way.
The challenge I'm facing is ensuring that I don't spend all of the Retirement Accounts using the "Specify percent of non-annuitized assets to be spent" on the Smooth Withdrawals tab. This seems to work just fine when I don't have a lump of money coming in late in life; I can see the program holding back withdrawals. But when I add the inheritance as mentioned above, the program seems bent on spending every bit of it, regardless of what I enter in the "Percent of assets to spend" box. Am I doing something wrong?
A related question: When I enter "Percent of assets", what's the percent based on? If I say 50%, I can't see that it's half of anything.