Newbie here ....
I have an Inherited IRA and set that up in the Accounts Section. I do not see the RMD amount being included in the Income section when I review things. There isn't even a column for it in the Income Sections...
What am I missing?
Hi this is Charlie Stone with Pralana. Good question.
Generally, the Income Statement includes income from external sources such as Employment, Pensions, Annuities, etc. For RMDs, you likely received the money from an external income source in the past, perhaps many years prior, and deposited it into the IRA. For tax purposes, the deposits were likely pre-tax (but may have been after-tax) contributions and thus not included in your taxable income in the year received.
RMD's are shown on the Cash Flow Statement under the 'Cash Inflows' section. If you click the checkbox for 'Show Empty Columns', you will see a wide assortment of other types of cash inflows which are also not included on the Income Statement.
RMD's are also shown on the Withdrawals tab and if you click on any RMD amount, the associated Metric MRI will pop up and show you how the amount is calculated.
You can see taxable IRA withdrawals at:
a) Review > Taxes > AGI Detail in the column for 1040 line 4b and 4d.
b) Review > Reports > Tax Forms and Brackets on any form 1040 lines 4b and 4d.
In summary, Uncle Sam considers RMD's taxable income in the year withdrawn, but Pralana considers it an account transfer from an IRA to cash which happens to be taxable as ordinary income.
I hope this is helpful!
Thanks, I see what you reference.
FWIW, I think it adds to confusion….
Perhaps adding a section in the manual explaining where to find things would be helpful.
Agreed. At some point I will add under More > Tools a searchable index of all metrics and where to find them (and their definitions).
May i suggest the Bill Hines book "Plan your money Path" to help you set it up. It can be helpful if you don't have the time to read the Pralana manual.
