by Carolyn Rothwell on January 20, 2012

Inherited IRAs - Learn More about TOTAL's Newest Feature!

The new inherited IRA feature in TOTAL Planning Suite allows planners to enter inherited IRAs in the Asset Details section. When entering an inherited IRA, make sure to select the asset type of "Retirement Plan" and the retirement plan type as "Inherited IRA". A new tab will become available called "Inherited IRA". Move to this tab to select details about the inherited IRA. The program will enable/disable certain options and fields based on selections to gather only the required information.

  • Beneficiary:
    • Spouse, Non-Spouse, or Estate
    • Single or Multiple Beneficiaries
  • IRA Type:
    • Traditional IRA
    • Roth IRA
  • Death of Owner:
    • Prior to Required Beginning Date
    • After Required Beginning Date
    • Beneficiary’s Age at Death of Owner
    • Age of Owner at Death
  • Distribution Options:
    • Rollover into Own
    • Distribute Based on RMDs
    • 5-Year Rule
    • Schedule custom distributions using the Age Change Table

Inherited IRA Input

Easy Money and Golden Years reports will track the inherited IRA account balance overtime and handle the distribution calculations based on the information set on the Asset Details and Inherited IRA tabs.  Taxation of the inherited IRA distributions will also be included in the calculations.

The chart below explains the distributions options available, assuming a traditional IRA with a single beneficiary, based on selections for a beneficiary type of spouse, non-spouse or estate.  The distribution treatment that will be reflected on the Easy Money or Golden Years is summarized. 

Inherited IRA Options

This feature has been well received by our early adopters, including Timothy Hayes CFP®, who had this to say about the new inherited IRA functionality:

“The latest update to TPS (with the inherited IRA tab) is a great improvement! Thanks for incorporating the inherited IRA data/information - it makes the RMD calculation and distribution illustrations so much easier and better. Thanks again.”

Thank you for the kind words Tim.

We hope that you will all enjoy this new feature! 

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Carolyn Rothwell

Carolyn enjoys spending her time building Money Tree Software's brand and products. Her experience creating and delivering financial plans for a full-service financial planning firm and supporting advisors working to provide the best planning to their clients as a Money Tree support member has provided an excellent understanding of the importance of financial planning.