by Carolyn Rothwell on April 21, 2015

RMD Start Age 69, 70 or 71 in TOTAL Planning Suite


RMDStateAgeTOTALRequired minimum distributions start at age 70.5, but they can be reported in Money Tree's TOTAL Planning Suite (Easy Money and Golden Years) as starting at age 69, 70, or 71 depending on a couple of factors.  The first factor is the client's birth date, and the second is the date of the projection.  

RMDs start at age 69:
RMDs displaying at age 69 infrequently, but can happen with the right set of circumstances.  The program indicates the first 12 months of the projection using the clients current age.  This will occur for clients with a birth date in the first half of the year, and the projection is run prior to the birth date.

Example:
Date of Projection:  1/1/2015
Birth Date of Client:  4/1/1945

The client is age 69 upon running the projection.  Age 69 is used to mark the first 12 months of the projection.  With the client’s 70th birthday near, the client will reach RMD age of 70.5 with in the first 12 months of the projection.  With the first 12 months indicated using the clients current age, the first RMD will be reported at age 69. 

RMDS start at age 70:  
RMDs most commonly display with a start age of 70.  If the client reaches age 70.5 within the 12 month period, the first RMD will be reported at age 70.

Example:
Date of Projection:  1/1/2015
Birth Date of Client:  8/1/1945

Like the first situation, the client is age 69 upon running the projection and age 69 is used to mark the first 12 months of the projection.  The client will reach age 70 in the first 12 months of the projection, but will not attain age 70.5 until the next twelve month period, which will be indicated with age 70.

RMDS start at age 71:  
RMDs displaying at age 71 occurs infrequently, but can happen with the right circumstances.  Again, the program indicates the first 12 months of the projection using the clients current age.  This will occur for clients with a birth date in the second half of the year, and the projection is run after the birth date.

Example:  
Date of Projection:  10/1/2015
Birth Date of Client:  7/1/1945

The client is age 70 upon running the projection.  Age 70 is used to mark the first 12 months of the projection.  With the client’s 70’s birthday recently gone by, the client will not reach RMD age of 70.5 within the first 12 months of the projection.  With the first 12 months indicated using the clients current age, the first RMD will be reported at age 71.  

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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.