I got an inherited IRA back in 2017. Pralana asks for the inherited value and then seems to calculate the RMD on this rather than on the much greater value the account has now. This makes sense, except that Pralana also has performance numbers for the past few years and might realize that the fund has grown substantially, far beyond the historical average. In the long-term, ignoring recent performance is probably better, but in the short-term it's a little misleading. How should I be looking at this?
Alan,
Please check out the comment in the Inherited Amount column header. It says: "If the inheritance occurred before the start of the modeling period, enter the balance on January 1 of the starting year". So, enter the current value, not the amount from 2017. PRC uses the inheritance date for determining the distribution period on the RMD's but uses the current account balance for determining the amount to be distributed.
Stuart
Thank you!
