Required Minimum Distributions (RMDs) in eMoney are automatically calculated and applied. For the current year, we estimate RMDs by taking the current account value divided by the appropriate RMD factor. For future years, we’ll look at the account year- end value and apply the appropriate tables. Once the account owner turns 70.5, RMDs are distributed out of the account.
However, some financial plans require a more custom approach to RMDs, which is why you can change the default settings.
Let’s look at how to manage RMDs in eMoney.
Since the default setting is to automatically apply RMDs, you’ll need to access the qualified retirement account to make any adjustments. The RMD options are located under the Beneficiaries tab under Advanced Facts > Investments > Qualified Retirement. From there, you can choose to disable or delay RMDs or indicate that it’s an inherited asset.
- Apply RMD? Yes specifies that the retirement account you are viewing will be included when calculating RMDs. No specifies that the account will not be included when calculating RMD distributions. If you’d like to turn off all RMDs, you will need to select No for each qualified retirement account entered.
- Inherited from Non-Spouse? When entering an inherited IRA, it’s important to use this field to properly calculate RMDs. You’ll select Yes if the account was inherited from anyone besides the client’s spouse and complete the RMD Factorand In Year fields. If you don’t know the RMD Factor, select Look Up RMD Factor. For more info on Inherited IRAs, check out our user guide.
- Delay RMD Until Post 70-1/2 Retirement? If your client is planning to retire later than age 70.5, you can delay RMDs. Select Yes to tie the distributions from the account to the retirement age entered in Facts.
RMDs in Reports
You can view RMDs in both the Cash Flow and Ledger reports. In Cash Flow, RMDs will display under the Planned Distributions column. You can click into Planned Distributions for more detailed information. In the Ledger, you’ll look for each qualified retirement account and see the Minimum Distribution amount for each year starting at age 70.5 or later depending on the selected settings.