RMD Data Input

Data input prompts for the Required Minimum Distribution tool are discussed below:

Illustration Type

Traditional Analysis

This will allow for more configuration for the illustration for cases such as an inherited 403(b) qualified plan, etc.

Quick Comparison

This option allows for comparing taking a traditional RMD from an account with starting earlier, to potential reduce the exposure to taxation. This option will remove a number of the prompts for the RMD Comparison and display the following prompts:

Illustrate Target-Match RMD

Selecting this option will prompt for setting distribution start age, the target age and the distribution COLA.

Custom Distributions

Selecting this option will add an additional prompt for the custom distribution dollar value.


Client's DOB

Enter the client's date of birth.

Retirement Age

This data is used for the hypothetical cash flow analysis. If your client is younger than the proposed retirement date, the client's proposed retirement date is needed.

Life Expectancy (years)

The default value is from the IRS life expectancy tables. If a 'Reset' button (ResetBtn) appears on the right of the editor, a manual value was entered. To reset it to the IRS tables, click on the 'Reset' button.

Has Beneficiary

Used for illustrating the hypothetical cash flow analysis to the beneficiary


Beneficiary's DOB

Enter the date of birth of the named beneficiary.

Beneficiary is Spouse

Check if the beneficiary is the spouse.

Show Beneficiary's RMD Values

Determines if the beneficiary is included in the illustration.

Beneficiary's Life Expectancy (years)

Similar to the client's life expectancy prompt: the default value is from the IRS life expectancy tables. If a 'Reset' button (ResetBtn) appears on the right of the editor, a manual value was entered. To reset it to the IRS tables, click on the 'Reset' button.

Account Information

Account is a 403(b) Qualified Plan

Check if the account is a 403(b) account, and then the 12/31/1986 balance can be documented.

Account Balance as of 12/31/1986

Available only if the prior input (Account is a 403(b) Qualified Plan) is checked.  Enter the balance for the 12/31/1986 date.

Balances as of 12/31/[Last Year]

Enter the balance of the account on the last day of last year.

Total Year to Date Distributions

Enter the total year to date distributions.

# of Deposits per Year (until the year turning 70½)

If deposits are ongoing, enter the ongoing deposits.

Deposit Value

Enter the value of the ongoing deposits, if any.

Pre-Retirement Interest Rate

Enter the pre-retirement interest rate.

Post-Retirement Interest Rate

Enter the interest rate after retirement.

Deposit Increase Method

Enter the method for increasing deposits. The options are None, Annually by %, and Annually by $.

Deposit Increase

Enter the value corresponding to the Deposit Increase Method selected.

RMD Compare

This is only available if Quick Comparison is selected as the Illustration Type (the first prompt).

The illustration compares taking the traditional RMD payments with starting prior to the requirements to alleviate some of the potential exposure to taxation.

There are two type of comparison options for this: Automatic Target-Match and Custom Distributions.  The Automatic Target-Match has  TRAK to calculate a level distributions (or as much as possible) during the specified period of time. The Custom Distributions allows the user to control the time period and the value of the distributions. A cost of living adjustment (COLA) can be applied to both time periods. The prompts are the same for both options, except the Custom Distributions option requires a specific distribution be entered.  The prompts are discussed below.

Distribution Start Age and End Age

Enter the age span that the RMD comparison is to be calculated.

Custom Distribution

This is only available if Custom Distributions is elected as the RMD Comparison. Enter the distribution that occurs during the Distribution Start Age.

Note:Getting the right value for the Custom Distribution make take some guessing. After entering the value, it may good to see how this chances the analysis, and the increase or decrease the value entered.

Distribution COLA

This is the cost of living adjustment (COLA) that is applied each year during the distribution. Because tax brackets are indexed to inflation, entering a value here keeps distributions lower in the ealy years, where higher tax rates may be applied with the higher distributions.