The data input is categorized by tab. Below is a description of the required data:
Client Info
Client
DOB
Enter the client's date of birth.
Retire Age
Enter the client's retirement age.
Retire Month
Enter the end of the month the client will retire.
| Note: | The Retire Age and Retire Month input is used for clients who have not yet retired and may change their ongoing deposits to the account. |
Life Expectancy
Enter the life expectancy of the client. Note that by clicking on the calculator button on the right, TRAK will assign the life expectancy from the IRS tables.
Spouse
Spouse is Initial Beneficiary
If the spouse is the initial beneficiary of the account, check this box. Note that the spouse's life expectancy must be greater than the client's for the illustration to show the spouse as the initial beneficiary.
The spouse has similar prompts as the client.
Estate Values
Enter the values of various estate items. Enter an item where the 'Click here to add new row' text appears. After entering a record, a new item may be added by pressing the tab key in the last column.
| Note: | Estate items are used to determine the tax due at the latter of the client's or spouse's life expectancy. |
Account Setup
General
Account Owner
Signify the owner of the IRA account. The Client or Spouse may be selected.
Current Balance
Enter the account balance.
Balance as of
Enter when the account balance is taken. The options are Current Date, End of Last Year, and End of This Year.
Include 3rd Generation
To include the 3rd generation (client's grandchildren) in the illustration, check this box.
This is a 403(b) Account
If this is a 403(b) account, check this box.
Start RMD withdrawals on full account balance starting at 70½
If the 12/31/1986 balance on the 403(b) account can be documented, RMD withdrawals may be lower until the client reaches age 75. Check this box if the client wishes to take RMDs on the full account balance.
Balance as of 12/31/1986
Enter the balance of the account at the date indicated.
Incomes
Account is needed for incomes other than RMD
If incomes additional to, or above, RMD are needed, check this box.
| Note: | Incomes in addition to, or above, RMD will decrease the payout to children and grandchildren. |
Client's Minimum Income at Retirement
Enter the minimum income in today's dollars for the client to receive. (The inflation factor will be applied from today to the time that the income starts.)
Client's Minimum Income after turning 70½
Enter the minimum income when the client turns 70½ in today's dollars for the client to receive. (The inflation factor will be applied from today to the time that the income starts.)
Distribute income to the Spouse based on Life Expectancy, regardless of Age
Check this box if the spouse is to receive income based on their life expectancy, meaning the account balance is divided by their life expectancy.
Spouse's Minimum Income after Client's Death (not less than the value based on life expectancy)
Enter the minimum income in today's dollars the spouse is to receive when the client reaches their life expectancy.
Inflation factor for Incomes
Enter any inflation factor for the income. The inflation factor affects all incomes starting next year, even if the income has not started.
Deposits and Interest
Projected Deposits
If the client has not yet reached age 70½, deposits may still be occurring. Otherwise the editor will be disabled.
# of Deposits per Year
Enter the number of ongoing deposits into the IRA per year.
Pre-Retirement Deposit
Enter the pre-retirement deposit to the account. This prompt will be disabled if the client has already reached retirement age.
Pre-70½ Deposit
Enter the pre-70½ deposit to the account. This prompt will be disabled if the client has already reached retirement age.
Hypothetical Interest Rates
Different interest rates may be used for different time periods. If the client is older than the time period indicated, the interest rate prompt will be disabled.
Enter the interest rate for the time period indicated.
Beneficiaries
Enter as many beneficiaries as desired. Additional beneficiaries may be added after pressing theTab key from the last column for data entry. The columns are described below:
Name
Enter the name of the designated beneficiary.
Weighting
Rather than entering the percent the beneficiary is to receive, enter the proportional weighting that the beneficiary is to receive. Beneficiaries that have equal weighting will receive equal percents. A higher value than other beneficiaries will result in a higher percent of the account.
| Note: | We are occasionally asked why we chose to have a user enter the "weighting" for the distribution rather than the percentage. Bottom line is that once a person becomes accustomed to the idea, it is much easier and more accurate. For example, when adding an additional beneficiary, if the distribution is even with the other beneficiary(ies), the same value is used in the weighting column, and there is no need return to other beneficiaries to modify their distribution value. If one beneficiary is to receive a higher proportion than other beneficiaries, it can easily be taken into account by having a higher weighting value. |
Percent (calculated)
This calculates the percent of the account that the client will receive based on their Weighting.
Types
Select the type of beneficiary the client is. The options are Child, Spouse, or Other.
Date of Birth
Enter the date the beneficiary was born.
Current Age (calculated)
This displays the beneficiary's calculated age based upon their DOB and the system's current date.
Life Expectancy
Years
Enter the beneficiary's life expectancy in years. When the column is focused, a calculator button (
) will appear on the right hand side. Pressing this will use the IRS life expectancy table values.
Age (calculated)
Displays the calculated age of the beneficiary's life expectancy.
Date (calculated)
Displays the calculated date of the beneficiary's life expectancy.
Click here to find more help for the calculation tab.
