We offer online planning tools that will assist you in planning for Early (72(t) & 72(q)) Distributions, Required Minimum Distributions and Beneficiary IRA Distributions.
IRA Tools
Enhancement - 12/05/2011 - A SEPP operating under the 5-Year rule can now be set up with a pro-rated first year withdrawal. This will also result in a pro-rated withdrawal in the final year (year 6) so that total withdrawals are equal to 5 times the calculated annual withdrawal. The PDF reports also contain an additional explanation page that outlines the dates covered by the 5-Year SEPP plan. A sample of this illustration can be viewed here
We have incorporated some of the features introduced at http://72t.net as part of the reports including the Treasury Trends graph and the last 18 months of SEPP interest rates. Some of the changes have been highlighted in yellow on the sample reports.
The online demo version can be viewed by selecting "Online IRA Illustrations" from the left menu at yyyz.com. Features of the IRA Tools programs include the ability to print all reports directly to a PDF report file and the ability when illustrating a SEPP to switch to the Minimum Distribution from the Annuity or Amortization methods on any year after the first plan year.
72(t)/72(q) Program Features Include:
- Pre-Age 59.5 Substantially Equal Periodic Payment [SEPP] plans subject to Revenue Ruling 2002-62 and Notice 2004-15. This module allows annual recalculation of distributions based on a PLR issued on May 11, 2004.
- You have the ability to assume that the initial payment (for projected values) is a pro-rata payment based on the number of months left in the current year.
- The ability to use Annual Recalculation for either the Annuity or Amortization methods.
- Illustrating SEPP Funds separately or showing them with additional non-SEPP IRA funds for a complete picture.
- Allowing the use of an estimated investment rate for projecting future values separate from the rate used for payment calculations.
- Retrieving the current IRS Maximum 120% Mid-Term Rate from the Internet without leaving the program. This feature will save you valuable time.
- Automatic calculation of "First Payment Modification" date. The last payment date and the first plan modification date [based on Arnold v. Comm., 111 TC No. 12 (1998)] is automatically calculated and included on the explanation report page.
- Comparing the three alternative payment schedules (Minimum Distribution, Amortization and Annuity) for each of the anticipated future plan years. The comparison chart can even include the switch to the MD method
- Including a "Cost to Bust" report schedule for each year of the plan based on an estimated IRS penalty interest rate.
- Using our online illustration system (http://72t.Net - on arrival, select HOME/Registered Users and enter your UserID/Password) to generate the same reports (in PDF format) as the desktop applications.
Our IRA Distribution Planning Software contains modules that allow your to prepare reports detailing four Minimum Distribution planning scenarios:
- Age 70.5 Minimum Distribution Stretch Plans - distribution reports for the IRA owner and the beneficiary. If the Designated Beneficiary is the surviving spouse, the third section is for the spouse's beneficiary. Beneficiary status codes include: 1) No Designated Beneficiary; 2) Individual, Non-Spouse Beneficiary; and 3) Spouse Beneficiary with No Rollover (continues original IRA); and 4) Spouse Beneficiary assuming ownership with rollover to personal account.
- Beneficiary IRA Calculations for Stretch Plans - allows you to do current year and projected year-by-year reports for a Beneficiary IRA - after the death of the owner. Beneficiary status codes include: 1) No Designated Beneficiary; 2) Individual, Non-Spouse Beneficiary; and 3) Spouse Beneficiary with No Rollover.
All client files are stored in a database and any client can have an almost unlimited number of planning associated scenarios. All reports have been formatted for easy client presentation.
All reports are prepared in PDF format. These PDF reports can be saved to your computer, printed to your printer or emailed directly to your client.