Using Planning Module of Q.'09 for IRA Withdrawals

Posted by SunCityCal on May 6, 2009, 11:39 am

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I am using the planning module to estimate the amount of my IRA
withdrawals. The amount the program shows me is +/- $5K more than I
usually take. It says the amount is determined by the "term certain"
method. How can I change that to make the determination show the
least required withdrawal based on mine and my spouse's ages?

Thanks for your help.

Posted by Stubby on May 7, 2009, 7:36 am

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> I am using the planning module to estimate the amount of my IRA

> withdrawals. =A0The amount the program shows me is +/- $5K =A0more than I

> usually take. =A0It says the amount is determined by the "term certain"

> method. =A0How can I change that to make the determination show =A0the

> least required withdrawal based on mine and my spouse's ages?

> Thanks for your help.

Be very careful with the distributions. I found out the hardway when
I decided to take liquidate the IRA in 5 equal parts. The first
distribution had to be reported as ordinary income on the tax returns,
it tripped the "means test" on the Medicare Part B premium, it
prevented me from qualifying for a "Circuit Breaker" tax credit in
MA, .... Consult with a CPA (NOT a lawyer!).

Posted by jrossitter on May 9, 2009, 12:18 pm

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> I am using the planning module to estimate the amount of my IRA

> withdrawals. =EF=BF=BDThe amount the program shows me is +/- $5K =EF=BF=

=BDmore than I

> usually take. =EF=BF=BDIt says the amount is determined by the "term cert=

ain"

> method. =EF=BF=BDHow can I change that to make the determination show =EF=

=BF=BDthe

> least required withdrawal based on mine and my spouse's ages?

> Thanks for your help.

I'm not familiar with the planning module, but "term certain" sounds
like one of the 3 permissible methods for avoiding the pre-59 1/2
premature distribution penalty by calculating a "substantially equal
periodic payment" stream over life expectancy. If so, it would exceed
the required minimum distribution required after 70 1/2, although that
calculation method is another means to avoid the 10% penalty.