Modeling inherited IRA's a feature for PlannerPlus users. The tool automatically calculates RMDs when you reach 72. However, there are scenarios, such as inheriting an IRA, where someone would need to take an RMD at a younger age. The tool will allow you to simulate these withdrawals as individual transactions.

You should decide if you want to take a lump-sum withdrawal or spread out the transactions over 10 years or model both scenarios. If there are assets left in your account when you turn 72, they will be included in RMD calculations. Your withdrawal amount should account for growth in the Inherited IRA account. The basic steps are below:

Step 1: Set up an Inherited IRA as an asset

First, go to My Plan > Accounts and Assets, enter the inherited IRA account. You can enter the account manually or link to a financial institution.

Step 2: Set up manual Transfers

Next, go to My Plan > Money Flows. Each year, you plan to take a unique amount for the required RMD and enter a line item. If you plan to take the same amount each year, use Start Age and Stop Age to set up a reoccurring withdrawal. Select your Inherited IRA as the starting account, and then select the destination account. There is a notes field below to help you label the transactions.


Step 3: Confirm withdrawals on the insights charts

Finally, go to Insights > Savings. Scroll to the bottom chart labeled "Withdrawals." Drag the cursor over the bars on the chart to see detailed information per year in the chart. Validate that your withdrawals have been added accurately.

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