IRA Distribution Calculation Software

[Guest SPollock]

I am looking for an IRA Distribution Software that can calculate 72t distributions using ALL approved methods, as well as RMD at 70 1/2 and offer some graphics that I can show to clients. I am looking for a program under $400, if possible. I would like to be able to download a demo version of the program before I purchase it and would like to be able to get the program off of the internet. I have looked at a few of the offerings over the internet and have not found anything I like so far. We have two large organizations that are doing massive layoffs and many of the people are under 59 1/2. I would greatly appreciate any help in this matter!! Thank you!

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[John Olsen]

There are several programs which will do the tasks you describe. Steve Leimberg's "NumberCruncher" is one (www.leimberg.com).

I'm in the process, as it happens, of evaluating several IRA/Qualified Plan Distribution Analysis programs for a series of articles I'll be doing. (It becames obvious, early on, that one article wasn't going to do it). They are:

RPlanner - a fine, and VERY easy package. Not as comprehensive as Brentmark's or Ocaso's, or with the presentation quality of Impact's, but what it does, it does very well, and it doesn't have a vertical learning curve. (www.rplanner.com)

Brentmark's "Pension and Roth IRA Analyzer" - long a favorite tool of retirement planners, this tool allows you to compare a LOT of scenarios, and custom design reports to include only those columns you want. Its limitation to one retirement plan, one Roth IRA, and one "other assets" can be pretty limiting. (www.brentmark.com)

Ocasos's "Second 1/2" - lets you analyze as many plans as you want, of various types, and do a side-by-side comparison of several distribution schemes. The Estate Planning aspects are somewhat limited (it won't let you play with partial spousal disclaimers, for example), and the "Windows Explorer"-like navigation takes a bit of getting used to (as does the fact that if you enter a folder you later decide you don't need, you're obliged to START ALL OVER AGAIN, because the thing won't let you quit without providing the input that folder requires). However, there are things it does that no other program I have seen will do. (www.ocaso.net)

Impact Technology's "Qualified Plan Distribution Analysis" is still in beta (I'm one of the beta testers), but is VERY impressive. It links with what is, in my opinion, perhaps the best overall estate planning software out there, and combines considerable "ledger number crunching" with the "motivate to action" presentation graphics Impact is famous for. But there are things you can do with Ocaso's or Brentmark's package that you cannot do with Impact's. (www.impact-tech.com)

Wealthtec's "Advanced Pro Series" is an Excel add-on, requiring the newest (beta) version of ZCalc to run. I've had a chance to look at it only briefly [i am supposed to be running a practice, I'm told], but it looks EXTRAORDINARILY strong. (www.wealthtec.com)

I hope to have the first installment of this "analysis opus" completed in a few weeks. It will appear on the Financial Planning magazine website, and, I HOPE, in a couple of print magazines.

I hope that this VERY abbreviated report was of some help to you.

John L. Olsen, CLU, ChFC

Olsen Financial Group

St. Louis, MO

[Bruce Steiner]

There is no way to calculate "all" approved methods for pre-59 1/2 distributions. IRS Notice 89-25 sets forth several methods, but is *not* exclusive.

There have been numerous private rulings which have approved various methods, but they are not exclusive.

See my article on this subject, which is scheduled to appear in the December 1999 issue of Estate Planning. Each affected person may wish to consult his/her tax/estates attorney, who ought to subscribe to this publication, and who ought to be able to assist him/her.

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Bruce Steiner, attorney

(212) 986-6000 (NY office)

(201) 862-1080 (NJ office)

also admitted in FL

[Guest SPollock]

Thanks to both of you. Your information was extremely helpful!!!!

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[Mary Kay Foss]

An extremely inexpensive program (alas no fancy graphics) is available as part of Tax Tools. Order from CFS Income Tax 805/522-1157. Besides the Early distributions under the IRS Rev Proc it does RMD calculations, simple tax projections and a number of IRS forms. I use it for SS-4s and Powers of Attorney.

[BPickerCPA]

Not all of TaxTools calculations are correct. I would make sure I double check all of their numbers before using them, especially in cases involving Minimum Distribution Incidental Benefit rules.

[This message has been edited by BPickerCPA (edited 09-26-1999).]