Beneficiary IRA Und...
 
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Beneficiary IRA Understanding..

 

AC
 AC
(@findingpaths)
New Member Customer
Joined: 4 weeks ago
Posts: 3
Topic starter  

I have a bIRA that starts in 2021 w/ 10 year draw down. Repackaged into a boglehead 4 portfolio basically. I'm trying to grow it while it's dispersing to try and negate the tax loss that it gets hit with before transitioning into a new taxable account.

I'm used to handling this in planners adding it like a flat income for 10y but PRC seems to have some notion of bIRAs. I just can't figure out how to use it right.

Income / Inherited IRA / Amount $$$ / Year 2022 / Distro period 10

When I look in the analysis/projections however it lump sums it in year 2022 as far as I can tell.

Can i get a better breakdown of how a bIRA operates in PRC &/or get a better clue to using it. 🙂


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AC
 AC
(@findingpaths)
New Member Customer
Joined: 4 weeks ago
Posts: 3
Topic starter  

Sorry, 2021 I had the RMD for 2021, the bIRA clock starts in 2022 which is why I set it to 2022.


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Stuart Matthews
(@smatthews51)
Member Admin
Joined: 10 months ago
Posts: 183
 

@ciordia9 I'm not familiar with the term bIRA, but I assume you're referring to an inherited traditional IRA. Assuming you inherited that IRA prior to the start of the PRC modeling period (let's say 2021), then you enter the balance of that IRA account in the inherited traditional IRA field on the Financial Assets > Initial Balances page. Then, in the Inherited Traditional IRA section of the Income page, you enter the distribution period (10 years). You should leave the Amount and Year fields blank since the inheritance has already occurred. The rate of return on this account is assumed to be the same as that on your own tax-deferred accounts. Given this information, PRC will generate RMD's stretching over a 10-year period and you can see the results on the Tabular Projections pages (you may have to use the Tabular Projections > View Mgmt page to specify that the "RMD from Your Inherited IRA" is to be associated with a particular view).


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AC
 AC
(@findingpaths)
New Member Customer
Joined: 4 weeks ago
Posts: 3
Topic starter  

Sorry, you are correct, inherited ira, what I've come to calling a beneficiary ira or bira for my own shorthand. To kick it off I had to get an initial RMD that was for this year (because of how you have to take the rest of the deceased's benefit for the year) but it technically doesn't start until next year. That's why I have it and its subsequent 10 year wind-down occurring in 2022 not 2021. For a modeling test I'll go back and see what happens if I enter it as if it started this year.


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