How do I show Annuities within a regular IRA ?
The IRA Annuities that are annuitized into monthly checks…
- I would REMOVE the balances from your investments either by reducing your IRA balance or entering a Special Expense for the premium
- I would then enter a Cash Infusion for the monthly checks. You can either use 6 lines one for each annuity or ONE line and add up all 6. For the tax rate you will need to deduct ordinary income taxes I am assuming.
For the annuities that are Not annuitized…
- just leave them in the IRA as Qualified and let the software tap them as needed
- the reality is you will be limited by the 5% cap but I’m assuming you have other investments and that over the long term this estimate will still be sufficient
When I use the separate worksheets (Investments, Cash Infusion, Special Expenses) do they add to or replace any of the values/ input on the main input screens below the Retirement Income Graph labeled: 1 (personnel information, investments & social security); and 2 (Other Assumptions)?
- Investments will REPLACE balances and returns on the main screen so Add to Plan overwrites ALL values for those text fields
- Cash Infusions and Expenses just ADD TO the plan in a transparent way… you will only see the “effects” on the graphs and values in spreadsheets. Special Expenses for example “adds to” Retirement Income goal + inflation rate.