Hello, I just signed up for Pralana and have a question about how to enter a TIAA traditional annuity account into the model. TIAA does not allow Roth conversions on traditional accounts since withdrawals must be taken either in 10 equal payouts over ten years or by RMDs. I was planning on taking RMDs. How do I exclude my TIAA account from Roth conversion modeling and instruct Pralana to take RMDs instead?
Hi and welcome. I replied to your Feedback item on this but for the benefit of others...
There is no direct support for this in Pralana Online today. There have been multiple requests to support various types/flavors of 'qualified' annuities. This is one of the 8 features listed on More > Resources > Feature Voting and has a brief description there.
We will need to define the particular additional input fields required. For example, an assumed annual appreciation rate as well as fields to indicate whether the value of the annuity is added to the related tax-deferred account's balance for the RMD calculation and whether the annuity payments satisfy the RMD.
Thanks Charlie for the timely response.
I think I figured out a rough fix for now. I took the total of all my IRA/401k holdings that can be Roth converted and placed them under my name (even a small amount that is really my spouse's). I designated my TIAA traditional account as my spouse's. This allowed me to run a conversion scenario that excluded my spouse's traditional IRA account.
I look forward to a more elegant solution from Pralana.
Thanks again.
