Handout: SECURE Act: Mathematics of Estate Planning · The Mathematics of Estate Planning for IRAs...
Transcript of Handout: SECURE Act: Mathematics of Estate Planning · The Mathematics of Estate Planning for IRAs...
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 1
Presented by Robert S. Keebler, CPA/PFS, MST, AEP (Distinguished)1
Keebler & Associates, [email protected]
1. Special thanks to Stephen J Bigge, CPA for his assistance with modeling alternative strategies
The Mathematics of Estate Planning for IRAs After the Secure Act
How to Simulate Stretch Benefits for Your Clients
mailto:[email protected]
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 2
Outline• 2019 Law and Secure Act Changes• Conduit Trust Disaster – The Math• New Post-mortem Payout Rules• Roths vs. Traditional IRAs• Solutions to Analyze
– Roth conversions– Multi-generational spray trusts– Spousal rollovers and the new spousal rollover trap– IRAs to CRTs– IRA trusts for state income tax savings– IRA relocation to life insurance– Life insurance to offset increased tax-risk of early death– Naming a charity as a beneficiary
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 3
Pre-Secure Law
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 4
Stretch Out IRAs“Inherited” IRA
Objective: Prolong IRA payments over longest possible period of time, thus increasing wealth to future generations
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 5
Pre-Secure Bill Distribution Flowchart
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 6
Stretch Out IRAs“Inherited” IRA
• An IRA is treated as “inherited” if the individual for whose benefit the IRA is maintained acquired the IRA on account of the death of the original owner.
• Under Pre-Secure law, the IRA assets could be distributed based upon the life expectancy of the beneficiary.
IRC Sec. 401(a)(9)
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 7
Stretch Out IRAs“Inherited” IRA
• Two Strategies– Spousal Rollover– Inherited IRA
• Advantages – Rollover delays RMD until spouse’s own RBD– Inherited IRA provisions allow beneficiary’s life
expectancy to be used for distributions after death of IRA owner
Both Still Available After the Secure Act
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 8
Stretch Out IRAs“Inherited” IRA – Spousal Beneficiary – Rollover
• Exception to Inherited IRA rules.• Only available to surviving spouse.• Allows spouse to roll over assets received as beneficiary to a
new IRA in his/her own name.• Spouse’s age used to determine when required minimum
distributions must begin.• Spouse may use the Uniform Lifetime Table to determine
distributions.
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 9
Stretch Out IRAs“Inherited” IRA – Case Study
• Scenarios– Immediate distribution– IRA payable to non-qualified beneficiary (five-year rule)– IRA payable to surviving spouse (no spousal rollover)– IRA payable to surviving spouse (spousal rollover)– IRA payable to child– IRA payable to grandchild
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 10
Stretch Out IRAs“Inherited” IRA – Case Study
• Assumptions– IRA owner’s age – 65– Spouse’s age – 60 – Child’s age – 35– Grandchild’s age – 10
– IRA balance – $1,000,000– Brokerage account balance – $0
– Pre-tax growth rate – 8%– Ordinary income tax rate – 40%– Capital gains tax rate – 20%
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© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 11
Summary
YearImmediate Distribution
IRA Payable to Non-Qualified
Designated Beneficiary (i.e.
5-Year Rule)
IRA Payable to Surviving
Spouse (No Spousal Rollover)
IRA Payable to Surviving Spouse
(Spousal Rollover)
IRA Payable to Oldest Non-
Spousal Beneficiary
IRA Payable to Youngest Non-
Spousal Beneficiary
2007 643,200$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 2011 849,425$ 1,469,328$ 1,469,328$ 1,469,328$ 1,423,226$ 1,433,218$ 2016 1,202,539$ 1,248,084$ 1,948,200$ 2,101,979$ 2,002,522$ 2,036,421$ 2021 1,702,445$ 1,766,924$ 2,537,508$ 2,943,141$ 2,805,795$ 2,885,203$ 2026 2,410,166$ 2,501,450$ 3,228,176$ 4,100,369$ 3,913,063$ 4,075,163$ 2036 4,830,530$ 5,013,484$ 5,410,021$ 7,820,189$ 7,488,210$ 8,046,199$ 2046 9,681,500$ 10,048,183$ 10,842,933$ 14,479,672$ 13,945,755$ 15,631,736$
Stretch Out IRAs“Inherited” IRA – Case Study
Inputs
NOTE: DO NOT PRINT THIS PAGE
SingularPossesiveCurrent AgeAssumed Age @ Death
IRA Owner's First NameOO's5959Amortize
Surviving Spouse's First NameSS's5766Lump-Sum
Last NameClient
Oldest Beneficiary's NameCC's60N/A
Youngest Beneficiary's NameGCGC's15N/A
First Year of Analysis / Year of IRA Owner's Death2007
Federal Income Tax Rate35.00%
Federal Capital Gains Rate15.00%
State Income Tax Rate5.00%
State Capital Gains Rate5.00%
IRA Balance$ 1,000,000
Outside Assets Balance$ - 0
Growth Rate8.00%
Turnover on Growth50.00%
5-Year Payout Option (IRA Owner < 70)Lump-Sum
Denotes mandatory inputs
Enter the name of the oldest non-spousal beneficiary of the IRA owner in this cell
Enter the name of the youngest non-spousal beneficiary of the IRA owner in this cell
For purposes of this analysis, it is assumed that the IRA owner dies in the first year
For purposes of this analysis, the percentage entered in this cell is the amount of growth that is realized each year (i.e. capital gains subject to tax).
This entry is used for either: (1) taking a lump-sum payment in Year 5 or (2) amortizing the payments evenly over a five-year period if the IRA owner is under age 70 at the time of death (only applies to the "IRA Payable to Non-Qualified Designated Beneficiary" scenario)
Overview
O & S Client
Inherited IRA Analysis
Overview
The Inherited IRA Analysis is a comprehensive income tax analysis designed to show the additional wealth that can be
transferred through deferral. In particular, this analysis looks at six of the most common scenarios which affect IRA
owners. These scenarios can be summarized as follows.
Immediate Distribution
In this scenario, it is assumed the IRA is liquidated in the year of death with the after-tax proceeds being re-invested
in a taxable non-qualified account. This scenario is analogous to qualified retirement plan situations whereby the
beneficiary is required, under the provisions of the qualified retirement plan, to take the entire balance out as one
lump-sum.
IRA Payable to Non-Qualified Designated Beneficiary
This scenario assumes that the IRA is payable to a non-qualified beneficiary (e.g. estate, non-qualified trust, etc.).
To the extent that the decedent-IRA owner is less than age 70½ at the time of death, the IRA must be fully
distributed by December 31st of the year containing the fifth anniversary of the IRA owner's death. To the extent that
the decedent-IRA owner is 70½ or older at the time of death, the IRA is payable over the decedent-IRA owner's "ghost"
life expectancy. In this case, the factor used in the first year is determined by reference to the Single Life Table using
the age of the decedent-IRA owner in the year of death. This factor is then reduced by one every year thereafter.
IRA Payable to Surviving Spouse (No Spousal Rollover)
In this scenario, it is assumed that the decedent-IRA owner's surviving spouse inherits the IRA, but chooses to keep
the IRA in the decedent-IRA owner's name. To the extent that the surviving spouse is younger than the decedent-IRA
owner, it is assumed that the surviving spouse's age is used to determine the annual IRA distributions. In this case, the
factor used to determine the surviving spouse's annual IRA distribution is by reference to the Single Life Table. This
process is then repeated each year until the surviving spouse passes away. On the other hand, if the decedent-IRA
owner is younger than the surviving spouse, it is assumed that decedent-IRA owner's life expectancy is used to
determine the annual IRA distributions. In this situation, the factor used to determine the annual IRA distribution is
determined in the first year by reference to the Single Life Table using the decedent-IRA owner's age in the year of death.
Every year thereafter, this factor is reduced by one. Furthermore, regardless of which method that is used, it is assumed
that the first distribution will not take place until the decedent-IRA owner would have reached age 70½ (in the case where
the decedent-IRA owner was under age 70½ at the time of death).
IRA Payable to Surviving Spouse (Spousal Rollover)
This particular scenario assumes that instead of keeping the IRA in the name of the decedent-IRA owner (see description
above), the surviving spouse rolls over the decedent-IRA owner's IRA into her own IRA. In this case, the surviving spouse
may defer taking withdrawals from the IRA until she turns age 70½. Once the surviving spouse turns age 70½, the
annual IRA distribution is determined by reference to the Uniform Lifetime Table using the surviving spouse's age each
distribution year.
IRA Payable to Oldest Non-Spousal Beneficiary
This scenario assumes that a qualified non-spousal beneficiary (e.g. child, grandchild, brother, sister, etc.) inherits the
the IRA from the decedent-IRA owner. In this case, the first annual IRA distribution is determined by reference to the
Single Life Table using non-spousal beneficiary's age in the year following the year of the decedent-IRA owner's death.
Every year thereafter, the life expectancy factor is reduced by one. Further, to the extent that the decedent-IRA owner
is older than age 70½ at the time of death, the distribution for the year of death is determined by reference to the
Uniform Lifetime Table using the decedent-IRA owner's age in the year of death.
IRA Payable to Youngest Non-Spousal Beneficiary
This scenario assumes that a qualified non-spousal beneficiary (e.g. child, grandchild, brother, sister, etc.) inherits the
the IRA from the decedent-IRA owner. In this case, the first annual IRA distribution is determined by reference to the
Single Life Table using non-spousal beneficiary's age in the year following the year of the decedent-IRA owner's death.
Every year thereafter, the life expectancy factor is reduced by one. Further, to the extent that the decedent-IRA owner
is older than age 70½ at the time of death, the distribution for the year of death is determined by reference to the
Uniform Lifetime Table using the decedent-IRA owner's age in the year of death.
&L&6(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&C&8Page 1
Assumptions
O & S Client
Inherited IRA Analysis
Assumptions
First Year of Analysis / Year of Death2007
Five-Year Distribution0
(0=Lump-Sum at End of Five-Year Period; 1=Amortize)
Owner65
S's Age60Single Life TableUniform TableFactor
C's Age30082.47027.4N/A
GC's Age15181.67126.5N/A
280.67225.653.3
Total IRA Account Balance$1,000,000379.77324.767.9
Outside Assets Balance$0478.77423.8
577.77522.9
Growth Rate8.00%676.77622.0
Turnover on Growth50.00%775.87721.2
874.87820.3
Federal Income Tax Rate35.00%973.87919.5
State Income Tax Rate5.00%1072.88018.7
Effective Income Tax Rate40.00%1171.88117.9
1270.88217.1
Federal Capital Gains Tax Rate15.00%1369.98316.3
State Capital Gains Tax Rate5.00%1468.98415.5
Effective Capital Gains Tax Rate20.00%1567.98514.8
1666.98614.1
1766.08713.4
1865.08812.7
1964.08912.0
2063.09011.4
2162.19110.8
2261.19210.2
2360.1939.6
2459.1949.1
2558.2958.6
2657.2968.1
2756.2977.6
2855.3987.1
2954.3996.7
3053.31006.3
3152.41015.9
3251.41025.5
3350.41035.2
3449.41044.9
3548.51054.5
3647.51064.2
3746.51073.9
3845.61083.7
3944.61093.4
4043.61103.1
4142.71112.9
4241.71122.6
4340.71132.4
4439.81142.1
4538.81151.9
4637.9
4737.0
4836.0
4935.1
5034.2
5133.3
5232.3
5331.4
5430.5
5529.6
5628.7
5727.9
5827.0
5926.1
6025.2
6124.4
6223.5
6322.7
6421.8
6521.0
6620.2
6719.4
6818.6
6917.8
7017.0
7116.3
7215.5
7314.8
7414.1
7513.4
7612.7
7712.1
7811.4
7910.8
8010.2
819.7
829.1
838.6
848.1
857.6
867.1
876.7
886.3
895.9
905.5
915.2
924.9
934.6
944.3
954.1
963.8
973.6
983.4
993.1
1002.9
1012.7
1022.5
1032.3
1042.1
1051.9
1061.7
1071.5
1081.4
1091.2
1101.1
1111.0
&L&6(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&C&8Page 2
Summary
O & S Client
Inherited IRA Analysis
IRA Transfer to Family Summary
YearImmediate DistributionIRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)IRA Payable to Surviving Spouse (No Spousal Rollover)IRA Payable to Surviving Spouse (Spousal Rollover)IRA Payable to Oldest Non-Spousal BeneficiaryIRA Payable to Youngest Non-Spousal Beneficiary
2007$ 643,200$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000
2008$ 689,510$ 1,166,400$ 1,166,400$ 1,166,400$ 1,157,397$ 1,159,349
2009$ 739,155$ 1,259,712$ 1,259,712$ 1,259,712$ 1,240,160$ 1,244,398
2010$ 792,374$ 1,360,489$ 1,360,489$ 1,360,489$ 1,328,644$ 1,335,546
2011$ 849,425$ 1,469,328$ 1,469,328$ 1,469,328$ 1,423,226$ 1,433,218
2012$ 910,584$ 945,072$ 1,556,312$ 1,586,874$ 1,524,308$ 1,537,868
2013$ 976,146$ 1,013,117$ 1,647,777$ 1,713,824$ 1,632,313$ 1,649,980
2014$ 1,046,428$ 1,086,061$ 1,743,534$ 1,834,831$ 1,747,694$ 1,770,070
2015$ 1,121,771$ 1,164,258$ 1,843,656$ 1,964,041$ 1,870,929$ 1,898,688
2016$ 1,202,539$ 1,248,084$ 1,948,200$ 2,101,979$ 2,002,522$ 2,036,421
2017$ 1,289,122$ 1,337,946$ 2,057,201$ 2,249,198$ 2,143,012$ 2,183,896
2018$ 1,381,938$ 1,434,279$ 2,170,670$ 2,406,287$ 2,292,966$ 2,341,777
2019$ 1,481,438$ 1,537,547$ 2,288,586$ 2,573,864$ 2,452,985$ 2,510,777
2020$ 1,588,101$ 1,648,250$ 2,410,896$ 2,752,585$ 2,623,704$ 2,691,650
2021$ 1,702,445$ 1,766,924$ 2,537,508$ 2,943,141$ 2,805,795$ 2,885,203
2022$ 1,825,021$ 1,894,143$ 2,668,281$ 3,146,260$ 2,999,966$ 3,092,293
2023$ 1,956,422$ 2,030,521$ 2,803,024$ 3,362,712$ 3,206,968$ 3,313,832
2024$ 2,097,285$ 2,176,718$ 2,941,482$ 3,593,306$ 3,427,588$ 3,550,791
2025$ 2,248,289$ 2,333,442$ 3,083,334$ 3,838,893$ 3,662,661$ 3,804,202
2026$ 2,410,166$ 2,501,450$ 3,228,176$ 4,100,369$ 3,913,063$ 4,075,163
2027$ 2,583,698$ 2,681,554$ 3,375,517$ 4,378,676$ 4,179,718$ 4,364,840
2028$ 2,769,724$ 2,874,626$ 3,524,760$ 4,674,801$ 4,463,596$ 4,674,474
2029$ 2,969,144$ 3,081,599$ 3,675,194$ 4,989,781$ 4,765,719$ 5,005,380
2030$ 3,182,923$ 3,303,474$ 3,825,978$ 5,324,701$ 5,087,158$ 5,358,957
2031$ 3,412,093$ 3,541,325$ 3,976,119$ 5,680,696$ 5,429,037$ 5,736,688
2032$ 3,657,764$ 3,796,300$ 4,124,462$ 6,058,955$ 5,792,533$ 6,140,148
2033$ 3,921,123$ 4,069,634$ 4,391,517$ 6,460,715$ 6,178,881$ 6,571,005
2034$ 4,203,444$ 4,362,647$ 4,707,706$ 6,887,269$ 6,589,369$ 7,031,031
2035$ 4,506,092$ 4,676,758$ 5,046,661$ 7,339,961$ 7,025,344$ 7,522,100
2036$ 4,830,530$ 5,013,484$ 5,410,021$ 7,820,189$ 7,488,210$ 8,046,199
2037$ 5,178,328$ 5,374,455$ 5,799,542$ 8,329,402$ 7,979,429$ 8,605,430
2038$ 5,551,168$ 5,761,416$ 6,217,109$ 8,869,101$ 8,500,522$ 9,202,019
2039$ 5,950,852$ 6,176,238$ 6,664,741$ 9,440,838$ 9,053,068$ 9,838,318
2040$ 6,379,314$ 6,620,927$ 7,144,602$ 10,046,212$ 9,638,702$ 10,516,815
2041$ 6,838,624$ 7,097,634$ 7,659,014$ 10,686,869$ 10,259,117$ 11,240,138
2042$ 7,331,005$ 7,608,663$ 8,210,463$ 11,364,495$ 10,916,059$ 12,011,061
2043$ 7,858,837$ 8,156,487$ 8,801,616$ 12,080,817$ 11,611,326$ 12,832,512
2044$ 8,424,674$ 8,743,754$ 9,435,332$ 12,837,594$ 12,346,764$ 13,707,578
2045$ 9,031,250$ 9,373,305$ 10,114,676$ 13,636,610$ 13,124,264$ 14,639,510
2046$ 9,681,500$ 10,048,183$ 10,842,933$ 14,479,672$ 13,945,755$ 15,631,736
&L&6(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&C&8Page 3
Charts
Immediate DistributionIRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)IRA Payable to Surviving Spouse (No Spousal Rollover)IRA Payable to Surviving Spouse (Spousal Rollover)IRA Payable to Oldest Non-Spousal BeneficiaryIRA Payable to Youngest Non-Spousal Beneficiary
$ 643,200$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,0001
$ 689,510$ 1,166,400$ 1,166,400$ 1,166,400$ 1,157,397$ 1,159,3492
$ 739,155$ 1,259,712$ 1,259,712$ 1,259,712$ 1,240,160$ 1,244,3983
$ 792,374$ 1,360,489$ 1,360,489$ 1,360,489$ 1,328,644$ 1,335,5464
$ 849,425$ 1,469,328$ 1,469,328$ 1,469,328$ 1,423,226$ 1,433,2185
$ 910,584$ 945,072$ 1,556,312$ 1,586,874$ 1,524,308$ 1,537,8686
$ 976,146$ 1,013,117$ 1,647,777$ 1,713,824$ 1,632,313$ 1,649,9807
$ 1,046,428$ 1,086,061$ 1,743,534$ 1,834,831$ 1,747,694$ 1,770,0708
$ 1,121,771$ 1,164,258$ 1,843,656$ 1,964,041$ 1,870,929$ 1,898,6889
$ 1,202,539$ 1,248,084$ 1,948,200$ 2,101,979$ 2,002,522$ 2,036,42110
$ 1,289,122$ 1,337,946$ 2,057,201$ 2,249,198$ 2,143,012$ 2,183,89611
$ 1,381,938$ 1,434,279$ 2,170,670$ 2,406,287$ 2,292,966$ 2,341,77712
$ 1,481,438$ 1,537,547$ 2,288,586$ 2,573,864$ 2,452,985$ 2,510,77713
$ 1,588,101$ 1,648,250$ 2,410,896$ 2,752,585$ 2,623,704$ 2,691,65014
$ 1,702,445$ 1,766,924$ 2,537,508$ 2,943,141$ 2,805,795$ 2,885,20315
$ 1,825,021$ 1,894,143$ 2,668,281$ 3,146,260$ 2,999,966$ 3,092,29316
$ 1,956,422$ 2,030,521$ 2,803,024$ 3,362,712$ 3,206,968$ 3,313,83217
$ 2,097,285$ 2,176,718$ 2,941,482$ 3,593,306$ 3,427,588$ 3,550,79118
$ 2,248,289$ 2,333,442$ 3,083,334$ 3,838,893$ 3,662,661$ 3,804,20219
$ 2,410,166$ 2,501,450$ 3,228,176$ 4,100,369$ 3,913,063$ 4,075,16320
$ 2,583,698$ 2,681,554$ 3,375,517$ 4,378,676$ 4,179,718$ 4,364,84021
$ 2,769,724$ 2,874,626$ 3,524,760$ 4,674,801$ 4,463,596$ 4,674,47422
$ 2,969,144$ 3,081,599$ 3,675,194$ 4,989,781$ 4,765,719$ 5,005,38023
$ 3,182,923$ 3,303,474$ 3,825,978$ 5,324,701$ 5,087,158$ 5,358,95724
$ 3,412,093$ 3,541,325$ 3,976,119$ 5,680,696$ 5,429,037$ 5,736,68825
$ 3,657,764$ 3,796,300$ 4,124,462$ 6,058,955$ 5,792,533$ 6,140,14826
$ 3,921,123$ 4,069,634$ 4,391,517$ 6,460,715$ 6,178,881$ 6,571,00527
$ 4,203,444$ 4,362,647$ 4,707,706$ 6,887,269$ 6,589,369$ 7,031,03128
$ 4,506,092$ 4,676,758$ 5,046,661$ 7,339,961$ 7,025,344$ 7,522,10029
$ 4,830,530$ 5,013,484$ 5,410,021$ 7,820,189$ 7,488,210$ 8,046,19930
$ 5,178,328$ 5,374,455$ 5,799,542$ 8,329,402$ 7,979,429$ 8,605,43031
$ 5,551,168$ 5,761,416$ 6,217,109$ 8,869,101$ 8,500,522$ 9,202,01932
$ 5,950,852$ 6,176,238$ 6,664,741$ 9,440,838$ 9,053,068$ 9,838,31833
$ 6,379,314$ 6,620,927$ 7,144,602$ 10,046,212$ 9,638,702$ 10,516,81534
$ 6,838,624$ 7,097,634$ 7,659,014$ 10,686,869$ 10,259,117$ 11,240,13835
$ 7,331,005$ 7,608,663$ 8,210,463$ 11,364,495$ 10,916,059$ 12,011,06136
$ 7,858,837$ 8,156,487$ 8,801,616$ 12,080,817$ 11,611,326$ 12,832,51237
$ 8,424,674$ 8,743,754$ 9,435,332$ 12,837,594$ 12,346,764$ 13,707,57838
$ 9,031,250$ 9,373,305$ 10,114,676$ 13,636,610$ 13,124,264$ 14,639,51039
$ 9,681,500$ 10,048,183$ 10,842,933$ 14,479,672$ 13,945,755$ 15,631,73640
$ 643,200$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,0001
$ 689,510$ 1,166,400$ 1,166,400$ 1,166,400$ 1,157,397$ 1,159,3492
$ 739,155$ 1,259,712$ 1,259,712$ 1,259,712$ 1,240,160$ 1,244,3983
$ 792,374$ 1,360,489$ 1,360,489$ 1,360,489$ 1,328,644$ 1,335,5464
$ 849,425$ 1,469,328$ 1,469,328$ 1,469,328$ 1,423,226$ 1,433,2185
$ 910,584$ 945,072$ 1,556,312$ 1,586,874$ 1,524,308$ 1,537,8686
$ 976,146$ 1,013,117$ 1,647,777$ 1,713,824$ 1,632,313$ 1,649,9807
$ 1,046,428$ 1,086,061$ 1,743,534$ 1,834,831$ 1,747,694$ 1,770,0708
$ 1,121,771$ 1,164,258$ 1,843,656$ 1,964,041$ 1,870,929$ 1,898,6889
$ 1,202,539$ 1,248,084$ 1,948,200$ 2,101,979$ 2,002,522$ 2,036,42110
$ 1,289,122$ 1,337,946$ 2,057,201$ 2,249,198$ 2,143,012$ 2,183,89611
$ 1,381,938$ 1,434,279$ 2,170,670$ 2,406,287$ 2,292,966$ 2,341,77712
$ 1,481,438$ 1,537,547$ 2,288,586$ 2,573,864$ 2,452,985$ 2,510,77713
$ 1,588,101$ 1,648,250$ 2,410,896$ 2,752,585$ 2,623,704$ 2,691,65014
$ 1,702,445$ 1,766,924$ 2,537,508$ 2,943,141$ 2,805,795$ 2,885,20315
$ 1,825,021$ 1,894,143$ 2,668,281$ 3,146,260$ 2,999,966$ 3,092,29316
$ 1,956,422$ 2,030,521$ 2,803,024$ 3,362,712$ 3,206,968$ 3,313,83217
$ 2,097,285$ 2,176,718$ 2,941,482$ 3,593,306$ 3,427,588$ 3,550,79118
$ 2,248,289$ 2,333,442$ 3,083,334$ 3,838,893$ 3,662,661$ 3,804,20219
$ 2,410,166$ 2,501,450$ 3,228,176$ 4,100,369$ 3,913,063$ 4,075,16320
$ 2,583,698$ 2,681,554$ 3,375,517$ 4,378,676$ 4,179,718$ 4,364,84021
$ 2,769,724$ 2,874,626$ 3,524,760$ 4,674,801$ 4,463,596$ 4,674,47422
$ 2,969,144$ 3,081,599$ 3,675,194$ 4,989,781$ 4,765,719$ 5,005,38023
$ 3,182,923$ 3,303,474$ 3,825,978$ 5,324,701$ 5,087,158$ 5,358,95724
$ 3,412,093$ 3,541,325$ 3,976,119$ 5,680,696$ 5,429,037$ 5,736,68825
$ 3,657,764$ 3,796,300$ 4,124,462$ 6,058,955$ 5,792,533$ 6,140,14826
$ 3,921,123$ 4,069,634$ 4,391,517$ 6,460,715$ 6,178,881$ 6,571,00527
$ 4,203,444$ 4,362,647$ 4,707,706$ 6,887,269$ 6,589,369$ 7,031,03128
$ 4,506,092$ 4,676,758$ 5,046,661$ 7,339,961$ 7,025,344$ 7,522,10029
$ 4,830,530$ 5,013,484$ 5,410,021$ 7,820,189$ 7,488,210$ 8,046,19930
$ 5,178,328$ 5,374,455$ 5,799,542$ 8,329,402$ 7,979,429$ 8,605,43031
$ 5,551,168$ 5,761,416$ 6,217,109$ 8,869,101$ 8,500,522$ 9,202,01932
$ 5,950,852$ 6,176,238$ 6,664,741$ 9,440,838$ 9,053,068$ 9,838,31833
$ 6,379,314$ 6,620,927$ 7,144,602$ 10,046,212$ 9,638,702$ 10,516,81534
$ 6,838,624$ 7,097,634$ 7,659,014$ 10,686,869$ 10,259,117$ 11,240,13835
$ 7,331,005$ 7,608,663$ 8,210,463$ 11,364,495$ 10,916,059$ 12,011,06136
$ 7,858,837$ 8,156,487$ 8,801,616$ 12,080,817$ 11,611,326$ 12,832,51237
$ 8,424,674$ 8,743,754$ 9,435,332$ 12,837,594$ 12,346,764$ 13,707,57838
$ 9,031,250$ 9,373,305$ 10,114,676$ 13,636,610$ 13,124,264$ 14,639,51039
$ 9,681,500$ 10,048,183$ 10,842,933$ 14,479,672$ 13,945,755$ 15,631,73640
Charts
Immediate Distribution
IRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)
IRA Payable to Surviving Spouse (No Spousal Rollover)
IRA Payable to Surviving Spouse (Spousal Rollover)
IRA Payable to Oldest Non-Spousal Beneficiary
IRA Payable to Youngest Non-Spousal Beneficiary
Year
IRA Transfer to Family(The Power of Deferral)
Immediate
Immediate Distribution
IRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)
IRA Payable to Surviving Spouse (No Spousal Rollover)
IRA Payable to Surviving Spouse (Spousal Rollover)
IRA Payable to Oldest Non-Spousal Beneficiary
IRA Payable to Youngest Non-Spousal Beneficiary
Year
IRA Transfer to Family(The Power of Deferral)
Non-DB Trust
O & S Client
Inherited IRA Analysis
Immediate Distribution
OwnerRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
65N/A2007$ 1,000,000$ (1,000,000)$ - 0$ - 0$ - 0$ 600,000$ 48,000$ (4,800)$ 643,200$ 643,200
N/A2008$ 643,200$ - 0$ 51,456$ (5,146)$ 689,510$ 689,510
N/A2009$ 689,510$ - 0$ 55,161$ (5,516)$ 739,155$ 739,155
N/A2010$ 739,155$ - 0$ 59,132$ (5,913)$ 792,374$ 792,374
N/A2011$ 792,374$ - 0$ 63,390$ (6,339)$ 849,425$ 849,425
N/A2012$ 849,425$ - 0$ 67,954$ (6,795)$ 910,584$ 910,584
N/A2013$ 910,584$ - 0$ 72,847$ (7,285)$ 976,146$ 976,146
N/A2014$ 976,146$ - 0$ 78,092$ (7,809)$ 1,046,428$ 1,046,428
N/A2015$ 1,046,428$ - 0$ 83,714$ (8,371)$ 1,121,771$ 1,121,771
N/A2016$ 1,121,771$ - 0$ 89,742$ (8,974)$ 1,202,539$ 1,202,539
N/A2017$ 1,202,539$ - 0$ 96,203$ (9,620)$ 1,289,122$ 1,289,122
N/A2018$ 1,289,122$ - 0$ 103,130$ (10,313)$ 1,381,938$ 1,381,938
N/A2019$ 1,381,938$ - 0$ 110,555$ (11,056)$ 1,481,438$ 1,481,438
N/A2020$ 1,481,438$ - 0$ 118,515$ (11,852)$ 1,588,101$ 1,588,101
N/A2021$ 1,588,101$ - 0$ 127,048$ (12,705)$ 1,702,445$ 1,702,445
N/A2022$ 1,702,445$ - 0$ 136,196$ (13,620)$ 1,825,021$ 1,825,021
N/A2023$ 1,825,021$ - 0$ 146,002$ (14,600)$ 1,956,422$ 1,956,422
N/A2024$ 1,956,422$ - 0$ 156,514$ (15,651)$ 2,097,285$ 2,097,285
N/A2025$ 2,097,285$ - 0$ 167,783$ (16,778)$ 2,248,289$ 2,248,289
N/A2026$ 2,248,289$ - 0$ 179,863$ (17,986)$ 2,410,166$ 2,410,166
N/A2027$ 2,410,166$ - 0$ 192,813$ (19,281)$ 2,583,698$ 2,583,698
N/A2028$ 2,583,698$ - 0$ 206,696$ (20,670)$ 2,769,724$ 2,769,724
N/A2029$ 2,769,724$ - 0$ 221,578$ (22,158)$ 2,969,144$ 2,969,144
N/A2030$ 2,969,144$ - 0$ 237,532$ (23,753)$ 3,182,923$ 3,182,923
N/A2031$ 3,182,923$ - 0$ 254,634$ (25,463)$ 3,412,093$ 3,412,093
N/A2032$ 3,412,093$ - 0$ 272,967$ (27,297)$ 3,657,764$ 3,657,764
N/A2033$ 3,657,764$ - 0$ 292,621$ (29,262)$ 3,921,123$ 3,921,123
N/A2034$ 3,921,123$ - 0$ 313,690$ (31,369)$ 4,203,444$ 4,203,444
N/A2035$ 4,203,444$ - 0$ 336,276$ (33,628)$ 4,506,092$ 4,506,092
N/A2036$ 4,506,092$ - 0$ 360,487$ (36,049)$ 4,830,530$ 4,830,530
N/A2037$ 4,830,530$ - 0$ 386,442$ (38,644)$ 5,178,328$ 5,178,328
N/A2038$ 5,178,328$ - 0$ 414,266$ (41,427)$ 5,551,168$ 5,551,168
N/A2039$ 5,551,168$ - 0$ 444,093$ (44,409)$ 5,950,852$ 5,950,852
N/A2040$ 5,950,852$ - 0$ 476,068$ (47,607)$ 6,379,314$ 6,379,314
N/A2041$ 6,379,314$ - 0$ 510,345$ (51,035)$ 6,838,624$ 6,838,624
N/A2042$ 6,838,624$ - 0$ 547,090$ (54,709)$ 7,331,005$ 7,331,005
N/A2043$ 7,331,005$ - 0$ 586,480$ (58,648)$ 7,858,837$ 7,858,837
N/A2044$ 7,858,837$ - 0$ 628,707$ (62,871)$ 8,424,674$ 8,424,674
N/A2045$ 8,424,674$ - 0$ 673,974$ (67,397)$ 9,031,250$ 9,031,250
N/A2046$ 9,031,250$ - 0$ 722,500$ (72,250)$ 9,681,500$ 9,681,500
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 4
No Rollover
O & S Client
Inherited IRA Analysis
IRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)
OwnerRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
65N/A2007$ 1,000,000$ - 0$ 80,000$ 1,080,000$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,080,000
N/A2008$ 1,080,000$ - 0$ 86,400$ 1,166,400$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,166,400
N/A2009$ 1,166,400$ - 0$ 93,312$ 1,259,712$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,259,712
N/A2010$ 1,259,712$ - 0$ 100,777$ 1,360,489$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,360,489
N/A2011$ 1,360,489$ - 0$ 108,839$ 1,469,328$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,469,328
N/A2012$ 1,469,328$ (1,469,328)$ - 0$ - 0$ - 0$ 881,597$ 70,528$ (7,053)$ 945,072$ 945,072
N/A2013$ - 0$ - 0$ - 0$ - 0$ 945,072$ - 0$ 75,606$ (7,561)$ 1,013,117$ 1,013,117
N/A2014$ - 0$ - 0$ - 0$ - 0$ 1,013,117$ - 0$ 81,049$ (8,105)$ 1,086,061$ 1,086,061
N/A2015$ - 0$ - 0$ - 0$ - 0$ 1,086,061$ - 0$ 86,885$ (8,688)$ 1,164,258$ 1,164,258
N/A2016$ - 0$ - 0$ - 0$ - 0$ 1,164,258$ - 0$ 93,141$ (9,314)$ 1,248,084$ 1,248,084
N/A2017$ - 0$ - 0$ - 0$ - 0$ 1,248,084$ - 0$ 99,847$ (9,985)$ 1,337,946$ 1,337,946
N/A2018$ - 0$ - 0$ - 0$ - 0$ 1,337,946$ - 0$ 107,036$ (10,704)$ 1,434,279$ 1,434,279
N/A2019$ - 0$ - 0$ - 0$ - 0$ 1,434,279$ - 0$ 114,742$ (11,474)$ 1,537,547$ 1,537,547
N/A2020$ - 0$ - 0$ - 0$ - 0$ 1,537,547$ - 0$ 123,004$ (12,300)$ 1,648,250$ 1,648,250
N/A2021$ - 0$ - 0$ - 0$ - 0$ 1,648,250$ - 0$ 131,860$ (13,186)$ 1,766,924$ 1,766,924
N/A2022$ - 0$ - 0$ - 0$ - 0$ 1,766,924$ - 0$ 141,354$ (14,135)$ 1,894,143$ 1,894,143
N/A2023$ - 0$ - 0$ - 0$ - 0$ 1,894,143$ - 0$ 151,531$ (15,153)$ 2,030,521$ 2,030,521
N/A2024$ - 0$ - 0$ - 0$ - 0$ 2,030,521$ - 0$ 162,442$ (16,244)$ 2,176,718$ 2,176,718
N/A2025$ - 0$ - 0$ - 0$ - 0$ 2,176,718$ - 0$ 174,137$ (17,414)$ 2,333,442$ 2,333,442
N/A2026$ - 0$ - 0$ - 0$ - 0$ 2,333,442$ - 0$ 186,675$ (18,668)$ 2,501,450$ 2,501,450
N/A2027$ - 0$ - 0$ - 0$ - 0$ 2,501,450$ - 0$ 200,116$ (20,012)$ 2,681,554$ 2,681,554
N/A2028$ - 0$ - 0$ - 0$ - 0$ 2,681,554$ - 0$ 214,524$ (21,452)$ 2,874,626$ 2,874,626
N/A2029$ - 0$ - 0$ - 0$ - 0$ 2,874,626$ - 0$ 229,970$ (22,997)$ 3,081,599$ 3,081,599
N/A2030$ - 0$ - 0$ - 0$ - 0$ 3,081,599$ - 0$ 246,528$ (24,653)$ 3,303,474$ 3,303,474
N/A2031$ - 0$ - 0$ - 0$ - 0$ 3,303,474$ - 0$ 264,278$ (26,428)$ 3,541,325$ 3,541,325
N/A2032$ - 0$ - 0$ - 0$ - 0$ 3,541,325$ - 0$ 283,306$ (28,331)$ 3,796,300$ 3,796,300
N/A2033$ - 0$ - 0$ - 0$ - 0$ 3,796,300$ - 0$ 303,704$ (30,370)$ 4,069,634$ 4,069,634
N/A2034$ - 0$ - 0$ - 0$ - 0$ 4,069,634$ - 0$ 325,571$ (32,557)$ 4,362,647$ 4,362,647
N/A2035$ - 0$ - 0$ - 0$ - 0$ 4,362,647$ - 0$ 349,012$ (34,901)$ 4,676,758$ 4,676,758
N/A2036$ - 0$ - 0$ - 0$ - 0$ 4,676,758$ - 0$ 374,141$ (37,414)$ 5,013,484$ 5,013,484
N/A2037$ - 0$ - 0$ - 0$ - 0$ 5,013,484$ - 0$ 401,079$ (40,108)$ 5,374,455$ 5,374,455
N/A2038$ - 0$ - 0$ - 0$ - 0$ 5,374,455$ - 0$ 429,956$ (42,996)$ 5,761,416$ 5,761,416
N/A2039$ - 0$ - 0$ - 0$ - 0$ 5,761,416$ - 0$ 460,913$ (46,091)$ 6,176,238$ 6,176,238
N/A2040$ - 0$ - 0$ - 0$ - 0$ 6,176,238$ - 0$ 494,099$ (49,410)$ 6,620,927$ 6,620,927
N/A2041$ - 0$ - 0$ - 0$ - 0$ 6,620,927$ - 0$ 529,674$ (52,967)$ 7,097,634$ 7,097,634
N/A2042$ - 0$ - 0$ - 0$ - 0$ 7,097,634$ - 0$ 567,811$ (56,781)$ 7,608,663$ 7,608,663
N/A2043$ - 0$ - 0$ - 0$ - 0$ 7,608,663$ - 0$ 608,693$ (60,869)$ 8,156,487$ 8,156,487
N/A2044$ - 0$ - 0$ - 0$ - 0$ 8,156,487$ - 0$ 652,519$ (65,252)$ 8,743,754$ 8,743,754
N/A2045$ - 0$ - 0$ - 0$ - 0$ 8,743,754$ - 0$ 699,500$ (69,950)$ 9,373,305$ 9,373,305
N/A2046$ - 0$ - 0$ - 0$ - 0$ 9,373,305$ - 0$ 749,864$ (74,986)$ 10,048,183$ 10,048,183
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 5
Spousal Rollover
O & S Client
Inherited IRA Analysis
IRA Payable to Surviving Spouse (No Spousal Rollover)
OwnerS's AgeC's AgeRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
656030N/A2007$ 1,000,000$ - 0$ 80,000$ 1,080,000$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,080,000
6131N/A2008$ 1,080,000$ - 0$ 86,400$ 1,166,400$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,166,400
6232N/A2009$ 1,166,400$ - 0$ 93,312$ 1,259,712$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,259,712
6333N/A2010$ 1,259,712$ - 0$ 100,777$ 1,360,489$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,360,489
6434N/A2011$ 1,360,489$ - 0$ 108,839$ 1,469,328$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,469,328
653521.02012$ 1,469,328$ (69,968)$ 111,949$ 1,511,309$ - 0$ 41,981$ 3,358$ (336)$ 45,003$ 1,556,312
663620.22013$ 1,511,309$ (74,817)$ 114,919$ 1,551,411$ 45,003$ 44,890$ 7,192$ (719)$ 96,366$ 1,647,777
3719.22014$ 1,551,411$ (80,803)$ 117,649$ 1,588,257$ 96,366$ 48,482$ 11,588$ (1,159)$ 155,277$ 1,743,534
3818.22015$ 1,588,257$ (87,267)$ 120,079$ 1,621,069$ 155,277$ 52,360$ 16,611$ (1,661)$ 222,587$ 1,843,656
3917.22016$ 1,621,069$ (94,248)$ 122,146$ 1,648,967$ 222,587$ 56,549$ 22,331$ (2,233)$ 299,233$ 1,948,200
4016.22017$ 1,648,967$ (101,788)$ 123,774$ 1,670,953$ 299,233$ 61,073$ 28,825$ (2,882)$ 386,248$ 2,057,201
4115.22018$ 1,670,953$ (109,931)$ 124,882$ 1,685,904$ 386,248$ 65,959$ 36,177$ (3,618)$ 484,766$ 2,170,670
4214.22019$ 1,685,904$ (118,726)$ 125,374$ 1,692,552$ 484,766$ 71,235$ 44,480$ (4,448)$ 596,033$ 2,288,586
4313.22020$ 1,692,552$ (128,224)$ 125,146$ 1,689,475$ 596,033$ 76,934$ 53,837$ (5,384)$ 721,421$ 2,410,896
4412.22021$ 1,689,475$ (138,482)$ 124,079$ 1,675,073$ 721,421$ 83,089$ 64,361$ (6,436)$ 862,435$ 2,537,508
4511.22022$ 1,675,073$ (149,560)$ 122,041$ 1,647,554$ 862,435$ 89,736$ 76,174$ (7,617)$ 1,020,727$ 2,668,281
4610.22023$ 1,647,554$ (161,525)$ 118,882$ 1,604,911$ 1,020,727$ 96,915$ 89,411$ (8,941)$ 1,198,112$ 2,803,024
479.22024$ 1,604,911$ (174,447)$ 114,437$ 1,544,901$ 1,198,112$ 104,668$ 104,222$ (10,422)$ 1,396,581$ 2,941,482
488.22025$ 1,544,901$ (188,403)$ 108,520$ 1,465,019$ 1,396,581$ 113,042$ 120,770$ (12,077)$ 1,618,315$ 3,083,334
497.22026$ 1,465,019$ (203,475)$ 100,924$ 1,362,467$ 1,618,315$ 122,085$ 139,232$ (13,923)$ 1,865,709$ 3,228,176
506.22027$ 1,362,467$ (219,753)$ 91,417$ 1,234,132$ 1,865,709$ 131,852$ 159,805$ (15,980)$ 2,141,385$ 3,375,517
515.22028$ 1,234,132$ (237,333)$ 79,744$ 1,076,543$ 2,141,385$ 142,400$ 182,703$ (18,270)$ 2,448,217$ 3,524,760
524.22029$ 1,076,543$ (256,320)$ 65,618$ 885,841$ 2,448,217$ 153,792$ 208,161$ (20,816)$ 2,789,354$ 3,675,194
533.22030$ 885,841$ (276,825)$ 48,721$ 657,737$ 2,789,354$ 166,095$ 236,436$ (23,644)$ 3,168,241$ 3,825,978
542.22031$ 657,737$ (298,971)$ 28,701$ 387,467$ 3,168,241$ 179,383$ 267,810$ (26,781)$ 3,588,653$ 3,976,119
551.22032$ 387,467$ (322,889)$ 5,166$ 69,744$ 3,588,653$ 193,733$ 302,591$ (30,259)$ 4,054,718$ 4,124,462
561.02033$ 69,744$ (69,744)$ - 0$ - 0$ 4,054,718$ 41,846$ 327,725$ (32,773)$ 4,391,517$ 4,391,517
571.02034$ - 0$ - 0$ - 0$ - 0$ 4,391,517$ - 0$ 351,321$ (35,132)$ 4,707,706$ 4,707,706
581.02035$ - 0$ - 0$ - 0$ - 0$ 4,707,706$ - 0$ 376,616$ (37,662)$ 5,046,661$ 5,046,661
591.02036$ - 0$ - 0$ - 0$ - 0$ 5,046,661$ - 0$ 403,733$ (40,373)$ 5,410,021$ 5,410,021
601.02037$ - 0$ - 0$ - 0$ - 0$ 5,410,021$ - 0$ 432,802$ (43,280)$ 5,799,542$ 5,799,542
611.02038$ - 0$ - 0$ - 0$ - 0$ 5,799,542$ - 0$ 463,963$ (46,396)$ 6,217,109$ 6,217,109
621.02039$ - 0$ - 0$ - 0$ - 0$ 6,217,109$ - 0$ 497,369$ (49,737)$ 6,664,741$ 6,664,741
631.02040$ - 0$ - 0$ - 0$ - 0$ 6,664,741$ - 0$ 533,179$ (53,318)$ 7,144,602$ 7,144,602
641.02041$ - 0$ - 0$ - 0$ - 0$ 7,144,602$ - 0$ 571,568$ (57,157)$ 7,659,014$ 7,659,014
651.02042$ - 0$ - 0$ - 0$ - 0$ 7,659,014$ - 0$ 612,721$ (61,272)$ 8,210,463$ 8,210,463
661.02043$ - 0$ - 0$ - 0$ - 0$ 8,210,463$ - 0$ 656,837$ (65,684)$ 8,801,616$ 8,801,616
671.02044$ - 0$ - 0$ - 0$ - 0$ 8,801,616$ - 0$ 704,129$ (70,413)$ 9,435,332$ 9,435,332
681.02045$ - 0$ - 0$ - 0$ - 0$ 9,435,332$ - 0$ 754,827$ (75,483)$ 10,114,676$ 10,114,676
691.02046$ - 0$ - 0$ - 0$ - 0$ 10,114,676$ - 0$ 809,174$ (80,917)$ 10,842,933$ 10,842,933
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 6
Oldest Beneficiary
O & S Client
Inherited IRA Analysis
IRA Payable to Surviving Spouse (Spousal Rollover)
OwnerS's AgeC's AgeRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
656030N/A2007$ 1,000,000$ - 0$ 80,000$ 1,080,000$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,080,000
6131N/A2008$ 1,080,000$ - 0$ 86,400$ 1,166,400$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,166,400
6232N/A2009$ 1,166,400$ - 0$ 93,312$ 1,259,712$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,259,712
6333N/A2010$ 1,259,712$ - 0$ 100,777$ 1,360,489$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,360,489
6434N/A2011$ 1,360,489$ - 0$ 108,839$ 1,469,328$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,469,328
6535N/A2012$ 1,469,328$ - 0$ 117,546$ 1,586,874$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,586,874
6636N/A2013$ 1,586,874$ - 0$ 126,950$ 1,713,824$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,713,824
3746.52014$ 1,713,824$ (36,856)$ 134,157$ 1,811,125$ - 0$ 22,114$ 1,769$ (177)$ 23,706$ 1,834,831
3845.52015$ 1,811,125$ (39,805)$ 141,706$ 1,913,026$ 23,706$ 23,883$ 3,807$ (381)$ 51,015$ 1,964,041
3944.52016$ 1,913,026$ (42,989)$ 149,603$ 2,019,640$ 51,015$ 25,794$ 6,145$ (614)$ 82,339$ 2,101,979
4043.52017$ 2,019,640$ (46,428)$ 157,857$ 2,131,068$ 82,339$ 27,857$ 8,816$ (882)$ 118,131$ 2,249,198
4142.52018$ 2,131,068$ (50,143)$ 166,474$ 2,247,399$ 118,131$ 30,086$ 11,857$ (1,186)$ 158,888$ 2,406,287
4241.52019$ 2,247,399$ (54,154)$ 175,460$ 2,368,705$ 158,888$ 32,493$ 15,310$ (1,531)$ 205,160$ 2,573,864
4340.52020$ 2,368,705$ (58,487)$ 184,817$ 2,495,035$ 205,160$ 35,092$ 19,220$ (1,922)$ 257,550$ 2,752,585
4439.52021$ 2,495,035$ (63,165)$ 194,550$ 2,626,420$ 257,550$ 37,899$ 23,636$ (2,364)$ 316,721$ 2,943,141
4538.52022$ 2,626,420$ (68,219)$ 204,656$ 2,762,857$ 316,721$ 40,931$ 28,612$ (2,861)$ 383,403$ 3,146,260
4637.52023$ 2,762,857$ (73,676)$ 215,134$ 2,904,315$ 383,403$ 44,206$ 34,209$ (3,421)$ 458,397$ 3,362,712
4736.52024$ 2,904,315$ (79,570)$ 225,980$ 3,050,725$ 458,397$ 47,742$ 40,491$ (4,049)$ 542,581$ 3,593,306
4835.52025$ 3,050,725$ (85,936)$ 237,183$ 3,201,972$ 542,581$ 51,562$ 47,531$ (4,753)$ 636,921$ 3,838,893
4934.52026$ 3,201,972$ (92,811)$ 248,733$ 3,357,894$ 636,921$ 55,686$ 55,409$ (5,541)$ 742,475$ 4,100,369
5033.52027$ 3,357,894$ (100,236)$ 260,613$ 3,518,271$ 742,475$ 60,141$ 64,209$ (6,421)$ 860,405$ 4,378,676
5132.52028$ 3,518,271$ (108,254)$ 272,801$ 3,682,818$ 860,405$ 64,953$ 74,029$ (7,403)$ 991,984$ 4,674,801
5231.52029$ 3,682,818$ (116,915)$ 285,272$ 3,851,175$ 991,984$ 70,149$ 84,971$ (8,497)$ 1,138,606$ 4,989,781
5330.52030$ 3,851,175$ (126,268)$ 297,993$ 4,022,900$ 1,138,606$ 75,761$ 97,149$ (9,715)$ 1,301,801$ 5,324,701
5429.52031$ 4,022,900$ (136,369)$ 310,922$ 4,197,453$ 1,301,801$ 81,822$ 110,690$ (11,069)$ 1,483,244$ 5,680,696
5528.52032$ 4,197,453$ (147,279)$ 324,014$ 4,374,187$ 1,483,244$ 88,367$ 125,729$ (12,573)$ 1,684,767$ 6,058,955
5627.52033$ 4,374,187$ (159,061)$ 337,210$ 4,552,336$ 1,684,767$ 95,437$ 142,416$ (14,242)$ 1,908,379$ 6,460,715
5726.52034$ 4,552,336$ (171,786)$ 350,444$ 4,730,994$ 1,908,379$ 103,072$ 160,916$ (16,092)$ 2,156,275$ 6,887,269
5825.52035$ 4,730,994$ (185,529)$ 363,637$ 4,909,102$ 2,156,275$ 111,318$ 181,407$ (18,141)$ 2,430,859$ 7,339,961
5924.52036$ 4,909,102$ (200,372)$ 376,698$ 5,085,429$ 2,430,859$ 120,223$ 204,087$ (20,409)$ 2,734,760$ 7,820,189
6023.52037$ 5,085,429$ (216,401)$ 389,522$ 5,258,550$ 2,734,760$ 129,841$ 229,168$ (22,917)$ 3,070,852$ 8,329,402
6122.52038$ 5,258,550$ (233,713)$ 401,987$ 5,426,823$ 3,070,852$ 140,228$ 256,886$ (25,689)$ 3,442,278$ 8,869,101
6221.52039$ 5,426,823$ (252,410)$ 413,953$ 5,588,366$ 3,442,278$ 151,446$ 287,498$ (28,750)$ 3,852,472$ 9,440,838
6320.52040$ 5,588,366$ (272,603)$ 425,261$ 5,741,024$ 3,852,472$ 163,562$ 321,283$ (32,128)$ 4,305,188$ 10,046,212
6419.52041$ 5,741,024$ (294,411)$ 435,729$ 5,882,341$ 4,305,188$ 176,647$ 358,547$ (35,855)$ 4,804,527$ 10,686,869
6518.52042$ 5,882,341$ (317,964)$ 445,150$ 6,009,527$ 4,804,527$ 190,779$ 399,624$ (39,962)$ 5,354,968$ 11,364,495
6617.52043$ 6,009,527$ (343,402)$ 453,290$ 6,119,416$ 5,354,968$ 206,041$ 444,881$ (44,488)$ 5,961,401$ 12,080,817
6716.52044$ 6,119,416$ (370,874)$ 459,883$ 6,208,425$ 5,961,401$ 222,524$ 494,714$ (49,471)$ 6,629,168$ 12,837,594
6815.52045$ 6,208,425$ (400,544)$ 464,631$ 6,272,512$ 6,629,168$ 240,326$ 549,560$ (54,956)$ 7,364,098$ 13,636,610
6914.52046$ 6,272,512$ (432,587)$ 467,194$ 6,307,119$ 7,364,098$ 259,552$ 609,892$ (60,989)$ 8,172,553$ 14,479,672
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 7
Youngest Beneficiary
O & S Client
Inherited IRA Analysis
IRA Payable to Oldest Non-Spousal Beneficiary
OwnerC's AgeRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
6530N/A2007$ 1,000,000$ - 0$ 80,000$ 1,080,000$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,080,000
3152.42008$ 1,080,000$ (20,611)$ 84,751$ 1,144,140$ - 0$ 12,366$ 989$ (99)$ 13,257$ 1,157,397
3251.42009$ 1,144,140$ (22,260)$ 89,750$ 1,211,631$ 13,257$ 13,356$ 2,129$ (213)$ 28,529$ 1,240,160
3350.42010$ 1,211,631$ (24,040)$ 95,007$ 1,282,598$ 28,529$ 14,424$ 3,436$ (344)$ 46,045$ 1,328,644
3449.42011$ 1,282,598$ (25,964)$ 100,531$ 1,357,166$ 46,045$ 15,578$ 4,930$ (493)$ 66,060$ 1,423,226
3548.42012$ 1,357,166$ (28,041)$ 106,330$ 1,435,455$ 66,060$ 16,824$ 6,631$ (663)$ 88,852$ 1,524,308
3647.42013$ 1,435,455$ (30,284)$ 112,414$ 1,517,585$ 88,852$ 18,170$ 8,562$ (856)$ 114,728$ 1,632,313
3746.42014$ 1,517,585$ (32,707)$ 118,790$ 1,603,669$ 114,728$ 19,624$ 10,748$ (1,075)$ 144,026$ 1,747,694
3845.42015$ 1,603,669$ (35,323)$ 125,468$ 1,693,813$ 144,026$ 21,194$ 13,218$ (1,322)$ 177,115$ 1,870,929
3944.42016$ 1,693,813$ (38,149)$ 132,453$ 1,788,117$ 177,115$ 22,889$ 16,000$ (1,600)$ 214,405$ 2,002,522
4043.42017$ 1,788,117$ (41,201)$ 139,753$ 1,886,670$ 214,405$ 24,721$ 19,130$ (1,913)$ 256,343$ 2,143,012
4142.42018$ 1,886,670$ (44,497)$ 147,374$ 1,989,547$ 256,343$ 26,698$ 22,643$ (2,264)$ 303,420$ 2,292,966
4241.42019$ 1,989,547$ (48,057)$ 155,319$ 2,096,809$ 303,420$ 28,834$ 26,580$ (2,658)$ 356,176$ 2,452,985
4340.42020$ 2,096,809$ (51,901)$ 163,593$ 2,208,501$ 356,176$ 31,141$ 30,985$ (3,099)$ 415,204$ 2,623,704
4439.42021$ 2,208,501$ (56,053)$ 172,196$ 2,324,643$ 415,204$ 33,632$ 35,907$ (3,591)$ 481,152$ 2,805,795
4538.42022$ 2,324,643$ (60,538)$ 181,128$ 2,445,234$ 481,152$ 36,323$ 41,398$ (4,140)$ 554,732$ 2,999,966
4637.42023$ 2,445,234$ (65,381)$ 190,388$ 2,570,242$ 554,732$ 39,228$ 47,517$ (4,752)$ 636,726$ 3,206,968
4736.42024$ 2,570,242$ (70,611)$ 199,970$ 2,699,601$ 636,726$ 42,367$ 54,327$ (5,433)$ 727,987$ 3,427,588
4835.42025$ 2,699,601$ (76,260)$ 209,867$ 2,833,208$ 727,987$ 45,756$ 61,899$ (6,190)$ 829,453$ 3,662,661
4934.42026$ 2,833,208$ (82,361)$ 220,068$ 2,970,915$ 829,453$ 49,416$ 70,310$ (7,031)$ 942,148$ 3,913,063
5033.42027$ 2,970,915$ (88,950)$ 230,557$ 3,112,523$ 942,148$ 53,370$ 79,641$ (7,964)$ 1,067,195$ 4,179,718
5132.42028$ 3,112,523$ (96,066)$ 241,317$ 3,257,774$ 1,067,195$ 57,639$ 89,987$ (8,999)$ 1,205,822$ 4,463,596
5231.42029$ 3,257,774$ (103,751)$ 252,322$ 3,406,345$ 1,205,822$ 62,250$ 101,446$ (10,145)$ 1,359,374$ 4,765,719
5330.42030$ 3,406,345$ (112,051)$ 263,544$ 3,557,838$ 1,359,374$ 67,230$ 114,128$ (11,413)$ 1,529,320$ 5,087,158
5429.42031$ 3,557,838$ (121,015)$ 274,946$ 3,711,769$ 1,529,320$ 72,609$ 128,154$ (12,815)$ 1,717,268$ 5,429,037
5528.42032$ 3,711,769$ (130,696)$ 286,486$ 3,867,559$ 1,717,268$ 78,418$ 143,655$ (14,365)$ 1,924,975$ 5,792,533
5627.42033$ 3,867,559$ (141,152)$ 298,113$ 4,024,520$ 1,924,975$ 84,691$ 160,773$ (16,077)$ 2,154,362$ 6,178,881
5726.42034$ 4,024,520$ (152,444)$ 309,766$ 4,181,842$ 2,154,362$ 91,466$ 179,666$ (17,967)$ 2,407,528$ 6,589,369
5825.42035$ 4,181,842$ (164,639)$ 321,376$ 4,338,578$ 2,407,528$ 98,784$ 200,505$ (20,050)$ 2,686,766$ 7,025,344
5924.42036$ 4,338,578$ (177,811)$ 332,861$ 4,493,629$ 2,686,766$ 106,686$ 223,476$ (22,348)$ 2,994,581$ 7,488,210
6023.42037$ 4,493,629$ (192,035)$ 344,128$ 4,645,721$ 2,994,581$ 115,221$ 248,784$ (24,878)$ 3,333,708$ 7,979,429
6122.42038$ 4,645,721$ (207,398)$ 355,066$ 4,793,389$ 3,333,708$ 124,439$ 276,652$ (27,665)$ 3,707,133$ 8,500,522
6221.42039$ 4,793,389$ (223,990)$ 365,552$ 4,934,951$ 3,707,133$ 134,394$ 307,322$ (30,732)$ 4,118,117$ 9,053,068
6320.42040$ 4,934,951$ (241,909)$ 375,443$ 5,068,485$ 4,118,117$ 145,146$ 341,061$ (34,106)$ 4,570,218$ 9,638,702
6419.42041$ 5,068,485$ (261,262)$ 384,578$ 5,191,800$ 4,570,218$ 156,757$ 378,158$ (37,816)$ 5,067,317$ 10,259,117
6518.42042$ 5,191,800$ (282,163)$ 392,771$ 5,302,408$ 5,067,317$ 169,298$ 418,929$ (41,893)$ 5,613,651$ 10,916,059
6617.42043$ 5,302,408$ (304,736)$ 399,814$ 5,397,486$ 5,613,651$ 182,842$ 463,719$ (46,372)$ 6,213,840$ 11,611,326
6716.42044$ 5,397,486$ (329,115)$ 405,470$ 5,473,841$ 6,213,840$ 197,469$ 512,905$ (51,290)$ 6,872,924$ 12,346,764
6815.42045$ 5,473,841$ (355,444)$ 409,472$ 5,527,868$ 6,872,924$ 213,267$ 566,895$ (56,690)$ 7,596,396$ 13,124,264
6914.42046$ 5,527,868$ (383,880)$ 411,519$ 5,555,507$ 7,596,396$ 230,328$ 626,138$ (62,614)$ 8,390,248$ 13,945,755
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 8
O & S Client
Inherited IRA Analysis
IRA Payable to Youngest Non-Spousal Beneficiary
OwnerGC's AgeRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
6515N/A2007$ 1,000,000$ - 0$ 80,000$ 1,080,000$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,080,000
1666.92008$ 1,080,000$ (16,143)$ 85,109$ 1,148,965$ - 0$ 9,686$ 775$ (77)$ 10,383$ 1,159,349
1765.92009$ 1,148,965$ (17,435)$ 90,522$ 1,222,052$ 10,383$ 10,461$ 1,668$ (167)$ 22,345$ 1,244,398
1864.92010$ 1,222,052$ (18,830)$ 96,258$ 1,299,480$ 22,345$ 11,298$ 2,691$ (269)$ 36,065$ 1,335,546
1963.92011$ 1,299,480$ (20,336)$ 102,332$ 1,381,476$ 36,065$ 12,202$ 3,861$ (386)$ 51,742$ 1,433,218
2062.92012$ 1,381,476$ (21,963)$ 108,761$ 1,468,274$ 51,742$ 13,178$ 5,194$ (519)$ 69,594$ 1,537,868
2161.92013$ 1,468,274$ (23,720)$ 115,564$ 1,560,118$ 69,594$ 14,232$ 6,706$ (671)$ 89,862$ 1,649,980
2260.92014$ 1,560,118$ (25,618)$ 122,760$ 1,657,260$ 89,862$ 15,371$ 8,419$ (842)$ 112,809$ 1,770,070
2359.92015$ 1,657,260$ (27,667)$ 130,367$ 1,759,961$ 112,809$ 16,600$ 10,353$ (1,035)$ 138,727$ 1,898,688
2458.92016$ 1,759,961$ (29,880)$ 138,406$ 1,868,487$ 138,727$ 17,928$ 12,532$ (1,253)$ 167,935$ 2,036,421
2557.92017$ 1,868,487$ (32,271)$ 146,897$ 1,983,113$ 167,935$ 19,363$ 14,984$ (1,498)$ 200,783$ 2,183,896
2656.92018$ 1,983,113$ (34,853)$ 155,861$ 2,104,121$ 200,783$ 20,912$ 17,736$ (1,774)$ 237,656$ 2,341,777
2755.92019$ 2,104,121$ (37,641)$ 165,318$ 2,231,799$ 237,656$ 22,584$ 20,819$ (2,082)$ 278,978$ 2,510,777
2854.92020$ 2,231,799$ (40,652)$ 175,292$ 2,366,439$ 278,978$ 24,391$ 24,270$ (2,427)$ 325,212$ 2,691,650
2953.92021$ 2,366,439$ (43,904)$ 185,803$ 2,508,337$ 325,212$ 26,343$ 28,124$ (2,812)$ 376,866$ 2,885,203
3052.92022$ 2,508,337$ (47,417)$ 196,874$ 2,657,794$ 376,866$ 28,450$ 32,425$ (3,243)$ 434,499$ 3,092,293
3151.92023$ 2,657,794$ (51,210)$ 208,527$ 2,815,111$ 434,499$ 30,726$ 37,218$ (3,722)$ 498,721$ 3,313,832
3250.92024$ 2,815,111$ (55,307)$ 220,784$ 2,980,589$ 498,721$ 33,184$ 42,552$ (4,255)$ 570,202$ 3,550,791
3349.92025$ 2,980,589$ (59,731)$ 233,669$ 3,154,526$ 570,202$ 35,839$ 48,483$ (4,848)$ 649,676$ 3,804,202
3448.92026$ 3,154,526$ (64,510)$ 247,201$ 3,337,217$ 649,676$ 38,706$ 55,071$ (5,507)$ 737,945$ 4,075,163
3547.92027$ 3,337,217$ (69,671)$ 261,404$ 3,528,951$ 737,945$ 41,802$ 62,380$ (6,238)$ 835,889$ 4,364,840
3646.92028$ 3,528,951$ (75,244)$ 276,297$ 3,730,003$ 835,889$ 45,146$ 70,483$ (7,048)$ 944,471$ 4,674,474
3745.92029$ 3,730,003$ (81,264)$ 291,899$ 3,940,639$ 944,471$ 48,758$ 79,458$ (7,946)$ 1,064,741$ 5,005,380
3844.92030$ 3,940,639$ (87,765)$ 308,230$ 4,161,104$ 1,064,741$ 52,659$ 89,392$ (8,939)$ 1,197,853$ 5,358,957
3943.92031$ 4,161,104$ (94,786)$ 325,305$ 4,391,623$ 1,197,853$ 56,872$ 100,378$ (10,038)$ 1,345,065$ 5,736,688
4042.92032$ 4,391,623$ (102,369)$ 343,140$ 4,632,395$ 1,345,065$ 61,421$ 112,519$ (11,252)$ 1,507,753$ 6,140,148
4141.92033$ 4,632,395$ (110,558)$ 361,747$ 4,883,583$ 1,507,753$ 66,335$ 125,927$ (12,593)$ 1,687,422$ 6,571,005
4240.92034$ 4,883,583$ (119,403)$ 381,134$ 5,145,315$ 1,687,422$ 71,642$ 140,725$ (14,073)$ 1,885,717$ 7,031,031
4339.92035$ 5,145,315$ (128,955)$ 401,309$ 5,417,668$ 1,885,717$ 77,373$ 157,047$ (15,705)$ 2,104,432$ 7,522,100
4438.92036$ 5,417,668$ (139,272)$ 422,272$ 5,700,668$ 2,104,432$ 83,563$ 175,040$ (17,504)$ 2,345,531$ 8,046,199
4537.92037$ 5,700,668$ (150,413)$ 444,020$ 5,994,275$ 2,345,531$ 90,248$ 194,862$ (19,486)$ 2,611,155$ 8,605,430
4636.92038$ 5,994,275$ (162,446)$ 466,546$ 6,298,375$ 2,611,155$ 97,468$ 216,690$ (21,669)$ 2,903,644$ 9,202,019
4735.92039$ 6,298,375$ (175,442)$ 489,835$ 6,612,767$ 2,903,644$ 105,265$ 240,713$ (24,071)$ 3,225,551$ 9,838,318
4834.92040$ 6,612,767$ (189,478)$ 513,863$ 6,937,153$ 3,225,551$ 113,687$ 267,139$ (26,714)$ 3,579,662$ 10,516,815
4933.92041$ 6,937,153$ (204,636)$ 538,601$ 7,271,118$ 3,579,662$ 122,781$ 296,195$ (29,620)$ 3,969,020$ 11,240,138
5032.92042$ 7,271,118$ (221,007)$ 564,009$ 7,614,121$ 3,969,020$ 132,604$ 328,130$ (32,813)$ 4,396,941$ 12,011,061
5131.92043$ 7,614,121$ (238,687)$ 590,035$ 7,965,468$ 4,396,941$ 143,212$ 363,212$ (36,321)$ 4,867,044$ 12,832,512
5230.92044$ 7,965,468$ (257,782)$ 616,615$ 8,324,301$ 4,867,044$ 154,669$ 401,737$ (40,174)$ 5,383,277$ 13,707,578
5329.92045$ 8,324,301$ (278,405)$ 643,672$ 8,689,568$ 5,383,277$ 167,043$ 444,026$ (44,403)$ 5,949,942$ 14,639,510
5428.92046$ 8,689,568$ (300,677)$ 671,111$ 9,060,002$ 5,949,942$ 180,406$ 490,428$ (49,043)$ 6,571,734$ 15,631,736
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 9
-
© 2011-2020 Keebler Tax & Wealth Education.All Rights Reserved 12
Summary – Year 30IRA Transfer to Family
(The Power of Deferral)
$4,500,000
$5,000,000
$5,500,000
$6,000,000
$6,500,000
$7,000,000
$7,500,000
$8,000,000
$8,500,000
Year 30
YearImmediate DistributionIRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)IRA Payable to Surviving Spouse (No Spousal Rollover)IRA Payable to Surviving Spouse (Spousal Rollover)IRA Payable to Oldest Non-Spousal BeneficiaryIRA Payable to Youngest Non-Spousal Beneficiary
Stretch Out IRAs“Inherited” IRA – Case Study
Inputs
NOTE: DO NOT PRINT THIS PAGE
SingularPossesiveCurrent AgeAssumed Age @ Death
IRA Owner's First NameOO's5959Amortize
Surviving Spouse's First NameSS's5766Lump-Sum
Last NameClient
Oldest Beneficiary's NameCC's60N/A
Youngest Beneficiary's NameGCGC's15N/A
First Year of Analysis / Year of IRA Owner's Death2007
Federal Income Tax Rate35.00%
Federal Capital Gains Rate15.00%
State Income Tax Rate5.00%
State Capital Gains Rate5.00%
IRA Balance$ 1,000,000
Outside Assets Balance$ - 0
Growth Rate8.00%
Turnover on Growth50.00%
5-Year Payout Option (IRA Owner < 70)Lump-Sum
Denotes mandatory inputs
Enter the name of the oldest non-spousal beneficiary of the IRA owner in this cell
Enter the name of the youngest non-spousal beneficiary of the IRA owner in this cell
For purposes of this analysis, it is assumed that the IRA owner dies in the first year
For purposes of this analysis, the percentage entered in this cell is the amount of growth that is realized each year (i.e. capital gains subject to tax).
This entry is used for either: (1) taking a lump-sum payment in Year 5 or (2) amortizing the payments evenly over a five-year period if the IRA owner is under age 70 at the time of death (only applies to the "IRA Payable to Non-Qualified Designated Beneficiary" scenario)
Overview
O & S Client
Inherited IRA Analysis
Overview
The Inherited IRA Analysis is a comprehensive income tax analysis designed to show the additional wealth that can be
transferred through deferral. In particular, this analysis looks at six of the most common scenarios which affect IRA
owners. These scenarios can be summarized as follows.
Immediate Distribution
In this scenario, it is assumed the IRA is liquidated in the year of death with the after-tax proceeds being re-invested
in a taxable non-qualified account. This scenario is analogous to qualified retirement plan situations whereby the
beneficiary is required, under the provisions of the qualified retirement plan, to take the entire balance out as one
lump-sum.
IRA Payable to Non-Qualified Designated Beneficiary
This scenario assumes that the IRA is payable to a non-qualified beneficiary (e.g. estate, non-qualified trust, etc.).
To the extent that the decedent-IRA owner is less than age 70½ at the time of death, the IRA must be fully
distributed by December 31st of the year containing the fifth anniversary of the IRA owner's death. To the extent that
the decedent-IRA owner is 70½ or older at the time of death, the IRA is payable over the decedent-IRA owner's "ghost"
life expectancy. In this case, the factor used in the first year is determined by reference to the Single Life Table using
the age of the decedent-IRA owner in the year of death. This factor is then reduced by one every year thereafter.
IRA Payable to Surviving Spouse (No Spousal Rollover)
In this scenario, it is assumed that the decedent-IRA owner's surviving spouse inherits the IRA, but chooses to keep
the IRA in the decedent-IRA owner's name. To the extent that the surviving spouse is younger than the decedent-IRA
owner, it is assumed that the surviving spouse's age is used to determine the annual IRA distributions. In this case, the
factor used to determine the surviving spouse's annual IRA distribution is by reference to the Single Life Table. This
process is then repeated each year until the surviving spouse passes away. On the other hand, if the decedent-IRA
owner is younger than the surviving spouse, it is assumed that decedent-IRA owner's life expectancy is used to
determine the annual IRA distributions. In this situation, the factor used to determine the annual IRA distribution is
determined in the first year by reference to the Single Life Table using the decedent-IRA owner's age in the year of death.
Every year thereafter, this factor is reduced by one. Furthermore, regardless of which method that is used, it is assumed
that the first distribution will not take place until the decedent-IRA owner would have reached age 70½ (in the case where
the decedent-IRA owner was under age 70½ at the time of death).
IRA Payable to Surviving Spouse (Spousal Rollover)
This particular scenario assumes that instead of keeping the IRA in the name of the decedent-IRA owner (see description
above), the surviving spouse rolls over the decedent-IRA owner's IRA into her own IRA. In this case, the surviving spouse
may defer taking withdrawals from the IRA until she turns age 70½. Once the surviving spouse turns age 70½, the
annual IRA distribution is determined by reference to the Uniform Lifetime Table using the surviving spouse's age each
distribution year.
IRA Payable to Oldest Non-Spousal Beneficiary
This scenario assumes that a qualified non-spousal beneficiary (e.g. child, grandchild, brother, sister, etc.) inherits the
the IRA from the decedent-IRA owner. In this case, the first annual IRA distribution is determined by reference to the
Single Life Table using non-spousal beneficiary's age in the year following the year of the decedent-IRA owner's death.
Every year thereafter, the life expectancy factor is reduced by one. Further, to the extent that the decedent-IRA owner
is older than age 70½ at the time of death, the distribution for the year of death is determined by reference to the
Uniform Lifetime Table using the decedent-IRA owner's age in the year of death.
IRA Payable to Youngest Non-Spousal Beneficiary
This scenario assumes that a qualified non-spousal beneficiary (e.g. child, grandchild, brother, sister, etc.) inherits the
the IRA from the decedent-IRA owner. In this case, the first annual IRA distribution is determined by reference to the
Single Life Table using non-spousal beneficiary's age in the year following the year of the decedent-IRA owner's death.
Every year thereafter, the life expectancy factor is reduced by one. Further, to the extent that the decedent-IRA owner
is older than age 70½ at the time of death, the distribution for the year of death is determined by reference to the
Uniform Lifetime Table using the decedent-IRA owner's age in the year of death.
&L&6(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&C&8Page 1
Assumptions
O & S Client
Inherited IRA Analysis
Assumptions
First Year of Analysis / Year of Death2007
Five-Year Distribution0
(0=Lump-Sum at End of Five-Year Period; 1=Amortize)
Owner65
S's Age60Single Life TableUniform TableFactor
C's Age30082.47027.4N/A
GC's Age15181.67126.5N/A
280.67225.653.3
Total IRA Account Balance$1,000,000379.77324.767.9
Outside Assets Balance$0478.77423.8
577.77522.9
Growth Rate8.00%676.77622.0
Turnover on Growth50.00%775.87721.2
874.87820.3
Federal Income Tax Rate35.00%973.87919.5
State Income Tax Rate5.00%1072.88018.7
Effective Income Tax Rate40.00%1171.88117.9
1270.88217.1
Federal Capital Gains Tax Rate15.00%1369.98316.3
State Capital Gains Tax Rate5.00%1468.98415.5
Effective Capital Gains Tax Rate20.00%1567.98514.8
1666.98614.1
1766.08713.4
1865.08812.7
1964.08912.0
2063.09011.4
2162.19110.8
2261.19210.2
2360.1939.6
2459.1949.1
2558.2958.6
2657.2968.1
2756.2977.6
2855.3987.1
2954.3996.7
3053.31006.3
3152.41015.9
3251.41025.5
3350.41035.2
3449.41044.9
3548.51054.5
3647.51064.2
3746.51073.9
3845.61083.7
3944.61093.4
4043.61103.1
4142.71112.9
4241.71122.6
4340.71132.4
4439.81142.1
4538.81151.9
4637.9
4737.0
4836.0
4935.1
5034.2
5133.3
5232.3
5331.4
5430.5
5529.6
5628.7
5727.9
5827.0
5926.1
6025.2
6124.4
6223.5
6322.7
6421.8
6521.0
6620.2
6719.4
6818.6
6917.8
7017.0
7116.3
7215.5
7314.8
7414.1
7513.4
7612.7
7712.1
7811.4
7910.8
8010.2
819.7
829.1
838.6
848.1
857.6
867.1
876.7
886.3
895.9
905.5
915.2
924.9
934.6
944.3
954.1
963.8
973.6
983.4
993.1
1002.9
1012.7
1022.5
1032.3
1042.1
1051.9
1061.7
1071.5
1081.4
1091.2
1101.1
1111.0
&L&6(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&C&8Page 2
Summary
O & S Client
Inherited IRA Analysis
IRA Transfer to Family Summary
YearImmediate DistributionIRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)IRA Payable to Surviving Spouse (No Spousal Rollover)IRA Payable to Surviving Spouse (Spousal Rollover)IRA Payable to Oldest Non-Spousal BeneficiaryIRA Payable to Youngest Non-Spousal Beneficiary
2007$ 643,200$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000
2008$ 689,510$ 1,166,400$ 1,166,400$ 1,166,400$ 1,157,397$ 1,159,349
2009$ 739,155$ 1,259,712$ 1,259,712$ 1,259,712$ 1,240,160$ 1,244,398
2010$ 792,374$ 1,360,489$ 1,360,489$ 1,360,489$ 1,328,644$ 1,335,546
2011$ 849,425$ 1,469,328$ 1,469,328$ 1,469,328$ 1,423,226$ 1,433,218
2012$ 910,584$ 945,072$ 1,556,312$ 1,586,874$ 1,524,308$ 1,537,868
2013$ 976,146$ 1,013,117$ 1,647,777$ 1,713,824$ 1,632,313$ 1,649,980
2014$ 1,046,428$ 1,086,061$ 1,743,534$ 1,834,831$ 1,747,694$ 1,770,070
2015$ 1,121,771$ 1,164,258$ 1,843,656$ 1,964,041$ 1,870,929$ 1,898,688
2016$ 1,202,539$ 1,248,084$ 1,948,200$ 2,101,979$ 2,002,522$ 2,036,421
2017$ 1,289,122$ 1,337,946$ 2,057,201$ 2,249,198$ 2,143,012$ 2,183,896
2018$ 1,381,938$ 1,434,279$ 2,170,670$ 2,406,287$ 2,292,966$ 2,341,777
2019$ 1,481,438$ 1,537,547$ 2,288,586$ 2,573,864$ 2,452,985$ 2,510,777
2020$ 1,588,101$ 1,648,250$ 2,410,896$ 2,752,585$ 2,623,704$ 2,691,650
2021$ 1,702,445$ 1,766,924$ 2,537,508$ 2,943,141$ 2,805,795$ 2,885,203
2022$ 1,825,021$ 1,894,143$ 2,668,281$ 3,146,260$ 2,999,966$ 3,092,293
2023$ 1,956,422$ 2,030,521$ 2,803,024$ 3,362,712$ 3,206,968$ 3,313,832
2024$ 2,097,285$ 2,176,718$ 2,941,482$ 3,593,306$ 3,427,588$ 3,550,791
2025$ 2,248,289$ 2,333,442$ 3,083,334$ 3,838,893$ 3,662,661$ 3,804,202
2026$ 2,410,166$ 2,501,450$ 3,228,176$ 4,100,369$ 3,913,063$ 4,075,163
2027$ 2,583,698$ 2,681,554$ 3,375,517$ 4,378,676$ 4,179,718$ 4,364,840
2028$ 2,769,724$ 2,874,626$ 3,524,760$ 4,674,801$ 4,463,596$ 4,674,474
2029$ 2,969,144$ 3,081,599$ 3,675,194$ 4,989,781$ 4,765,719$ 5,005,380
2030$ 3,182,923$ 3,303,474$ 3,825,978$ 5,324,701$ 5,087,158$ 5,358,957
2031$ 3,412,093$ 3,541,325$ 3,976,119$ 5,680,696$ 5,429,037$ 5,736,688
2032$ 3,657,764$ 3,796,300$ 4,124,462$ 6,058,955$ 5,792,533$ 6,140,148
2033$ 3,921,123$ 4,069,634$ 4,391,517$ 6,460,715$ 6,178,881$ 6,571,005
2034$ 4,203,444$ 4,362,647$ 4,707,706$ 6,887,269$ 6,589,369$ 7,031,031
2035$ 4,506,092$ 4,676,758$ 5,046,661$ 7,339,961$ 7,025,344$ 7,522,100
2036$ 4,830,530$ 5,013,484$ 5,410,021$ 7,820,189$ 7,488,210$ 8,046,199
2037$ 5,178,328$ 5,374,455$ 5,799,542$ 8,329,402$ 7,979,429$ 8,605,430
2038$ 5,551,168$ 5,761,416$ 6,217,109$ 8,869,101$ 8,500,522$ 9,202,019
2039$ 5,950,852$ 6,176,238$ 6,664,741$ 9,440,838$ 9,053,068$ 9,838,318
2040$ 6,379,314$ 6,620,927$ 7,144,602$ 10,046,212$ 9,638,702$ 10,516,815
2041$ 6,838,624$ 7,097,634$ 7,659,014$ 10,686,869$ 10,259,117$ 11,240,138
2042$ 7,331,005$ 7,608,663$ 8,210,463$ 11,364,495$ 10,916,059$ 12,011,061
2043$ 7,858,837$ 8,156,487$ 8,801,616$ 12,080,817$ 11,611,326$ 12,832,512
2044$ 8,424,674$ 8,743,754$ 9,435,332$ 12,837,594$ 12,346,764$ 13,707,578
2045$ 9,031,250$ 9,373,305$ 10,114,676$ 13,636,610$ 13,124,264$ 14,639,510
2046$ 9,681,500$ 10,048,183$ 10,842,933$ 14,479,672$ 13,945,755$ 15,631,736
&L&6(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&C&8Page 3
Charts
Immediate DistributionIRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)IRA Payable to Surviving Spouse (No Spousal Rollover)IRA Payable to Surviving Spouse (Spousal Rollover)IRA Payable to Oldest Non-Spousal BeneficiaryIRA Payable to Youngest Non-Spousal Beneficiary
$ 643,200$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,0001
$ 689,510$ 1,166,400$ 1,166,400$ 1,166,400$ 1,157,397$ 1,159,3492
$ 739,155$ 1,259,712$ 1,259,712$ 1,259,712$ 1,240,160$ 1,244,3983
$ 792,374$ 1,360,489$ 1,360,489$ 1,360,489$ 1,328,644$ 1,335,5464
$ 849,425$ 1,469,328$ 1,469,328$ 1,469,328$ 1,423,226$ 1,433,2185
$ 910,584$ 945,072$ 1,556,312$ 1,586,874$ 1,524,308$ 1,537,8686
$ 976,146$ 1,013,117$ 1,647,777$ 1,713,824$ 1,632,313$ 1,649,9807
$ 1,046,428$ 1,086,061$ 1,743,534$ 1,834,831$ 1,747,694$ 1,770,0708
$ 1,121,771$ 1,164,258$ 1,843,656$ 1,964,041$ 1,870,929$ 1,898,6889
$ 1,202,539$ 1,248,084$ 1,948,200$ 2,101,979$ 2,002,522$ 2,036,42110
$ 1,289,122$ 1,337,946$ 2,057,201$ 2,249,198$ 2,143,012$ 2,183,89611
$ 1,381,938$ 1,434,279$ 2,170,670$ 2,406,287$ 2,292,966$ 2,341,77712
$ 1,481,438$ 1,537,547$ 2,288,586$ 2,573,864$ 2,452,985$ 2,510,77713
$ 1,588,101$ 1,648,250$ 2,410,896$ 2,752,585$ 2,623,704$ 2,691,65014
$ 1,702,445$ 1,766,924$ 2,537,508$ 2,943,141$ 2,805,795$ 2,885,20315
$ 1,825,021$ 1,894,143$ 2,668,281$ 3,146,260$ 2,999,966$ 3,092,29316
$ 1,956,422$ 2,030,521$ 2,803,024$ 3,362,712$ 3,206,968$ 3,313,83217
$ 2,097,285$ 2,176,718$ 2,941,482$ 3,593,306$ 3,427,588$ 3,550,79118
$ 2,248,289$ 2,333,442$ 3,083,334$ 3,838,893$ 3,662,661$ 3,804,20219
$ 2,410,166$ 2,501,450$ 3,228,176$ 4,100,369$ 3,913,063$ 4,075,16320
$ 2,583,698$ 2,681,554$ 3,375,517$ 4,378,676$ 4,179,718$ 4,364,84021
$ 2,769,724$ 2,874,626$ 3,524,760$ 4,674,801$ 4,463,596$ 4,674,47422
$ 2,969,144$ 3,081,599$ 3,675,194$ 4,989,781$ 4,765,719$ 5,005,38023
$ 3,182,923$ 3,303,474$ 3,825,978$ 5,324,701$ 5,087,158$ 5,358,95724
$ 3,412,093$ 3,541,325$ 3,976,119$ 5,680,696$ 5,429,037$ 5,736,68825
$ 3,657,764$ 3,796,300$ 4,124,462$ 6,058,955$ 5,792,533$ 6,140,14826
$ 3,921,123$ 4,069,634$ 4,391,517$ 6,460,715$ 6,178,881$ 6,571,00527
$ 4,203,444$ 4,362,647$ 4,707,706$ 6,887,269$ 6,589,369$ 7,031,03128
$ 4,506,092$ 4,676,758$ 5,046,661$ 7,339,961$ 7,025,344$ 7,522,10029
$ 4,830,530$ 5,013,484$ 5,410,021$ 7,820,189$ 7,488,210$ 8,046,19930
$ 5,178,328$ 5,374,455$ 5,799,542$ 8,329,402$ 7,979,429$ 8,605,43031
$ 5,551,168$ 5,761,416$ 6,217,109$ 8,869,101$ 8,500,522$ 9,202,01932
$ 5,950,852$ 6,176,238$ 6,664,741$ 9,440,838$ 9,053,068$ 9,838,31833
$ 6,379,314$ 6,620,927$ 7,144,602$ 10,046,212$ 9,638,702$ 10,516,81534
$ 6,838,624$ 7,097,634$ 7,659,014$ 10,686,869$ 10,259,117$ 11,240,13835
$ 7,331,005$ 7,608,663$ 8,210,463$ 11,364,495$ 10,916,059$ 12,011,06136
$ 7,858,837$ 8,156,487$ 8,801,616$ 12,080,817$ 11,611,326$ 12,832,51237
$ 8,424,674$ 8,743,754$ 9,435,332$ 12,837,594$ 12,346,764$ 13,707,57838
$ 9,031,250$ 9,373,305$ 10,114,676$ 13,636,610$ 13,124,264$ 14,639,51039
$ 9,681,500$ 10,048,183$ 10,842,933$ 14,479,672$ 13,945,755$ 15,631,73640
$ 643,200$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,000$ 1,080,0001
$ 689,510$ 1,166,400$ 1,166,400$ 1,166,400$ 1,157,397$ 1,159,3492
$ 739,155$ 1,259,712$ 1,259,712$ 1,259,712$ 1,240,160$ 1,244,3983
$ 792,374$ 1,360,489$ 1,360,489$ 1,360,489$ 1,328,644$ 1,335,5464
$ 849,425$ 1,469,328$ 1,469,328$ 1,469,328$ 1,423,226$ 1,433,2185
$ 910,584$ 945,072$ 1,556,312$ 1,586,874$ 1,524,308$ 1,537,8686
$ 976,146$ 1,013,117$ 1,647,777$ 1,713,824$ 1,632,313$ 1,649,9807
$ 1,046,428$ 1,086,061$ 1,743,534$ 1,834,831$ 1,747,694$ 1,770,0708
$ 1,121,771$ 1,164,258$ 1,843,656$ 1,964,041$ 1,870,929$ 1,898,6889
$ 1,202,539$ 1,248,084$ 1,948,200$ 2,101,979$ 2,002,522$ 2,036,42110
$ 1,289,122$ 1,337,946$ 2,057,201$ 2,249,198$ 2,143,012$ 2,183,89611
$ 1,381,938$ 1,434,279$ 2,170,670$ 2,406,287$ 2,292,966$ 2,341,77712
$ 1,481,438$ 1,537,547$ 2,288,586$ 2,573,864$ 2,452,985$ 2,510,77713
$ 1,588,101$ 1,648,250$ 2,410,896$ 2,752,585$ 2,623,704$ 2,691,65014
$ 1,702,445$ 1,766,924$ 2,537,508$ 2,943,141$ 2,805,795$ 2,885,20315
$ 1,825,021$ 1,894,143$ 2,668,281$ 3,146,260$ 2,999,966$ 3,092,29316
$ 1,956,422$ 2,030,521$ 2,803,024$ 3,362,712$ 3,206,968$ 3,313,83217
$ 2,097,285$ 2,176,718$ 2,941,482$ 3,593,306$ 3,427,588$ 3,550,79118
$ 2,248,289$ 2,333,442$ 3,083,334$ 3,838,893$ 3,662,661$ 3,804,20219
$ 2,410,166$ 2,501,450$ 3,228,176$ 4,100,369$ 3,913,063$ 4,075,16320
$ 2,583,698$ 2,681,554$ 3,375,517$ 4,378,676$ 4,179,718$ 4,364,84021
$ 2,769,724$ 2,874,626$ 3,524,760$ 4,674,801$ 4,463,596$ 4,674,47422
$ 2,969,144$ 3,081,599$ 3,675,194$ 4,989,781$ 4,765,719$ 5,005,38023
$ 3,182,923$ 3,303,474$ 3,825,978$ 5,324,701$ 5,087,158$ 5,358,95724
$ 3,412,093$ 3,541,325$ 3,976,119$ 5,680,696$ 5,429,037$ 5,736,68825
$ 3,657,764$ 3,796,300$ 4,124,462$ 6,058,955$ 5,792,533$ 6,140,14826
$ 3,921,123$ 4,069,634$ 4,391,517$ 6,460,715$ 6,178,881$ 6,571,00527
$ 4,203,444$ 4,362,647$ 4,707,706$ 6,887,269$ 6,589,369$ 7,031,03128
$ 4,506,092$ 4,676,758$ 5,046,661$ 7,339,961$ 7,025,344$ 7,522,10029
$ 4,830,530$ 5,013,484$ 5,410,021$ 7,820,189$ 7,488,210$ 8,046,19930
$ 5,178,328$ 5,374,455$ 5,799,542$ 8,329,402$ 7,979,429$ 8,605,43031
$ 5,551,168$ 5,761,416$ 6,217,109$ 8,869,101$ 8,500,522$ 9,202,01932
$ 5,950,852$ 6,176,238$ 6,664,741$ 9,440,838$ 9,053,068$ 9,838,31833
$ 6,379,314$ 6,620,927$ 7,144,602$ 10,046,212$ 9,638,702$ 10,516,81534
$ 6,838,624$ 7,097,634$ 7,659,014$ 10,686,869$ 10,259,117$ 11,240,13835
$ 7,331,005$ 7,608,663$ 8,210,463$ 11,364,495$ 10,916,059$ 12,011,06136
$ 7,858,837$ 8,156,487$ 8,801,616$ 12,080,817$ 11,611,326$ 12,832,51237
$ 8,424,674$ 8,743,754$ 9,435,332$ 12,837,594$ 12,346,764$ 13,707,57838
$ 9,031,250$ 9,373,305$ 10,114,676$ 13,636,610$ 13,124,264$ 14,639,51039
$ 9,681,500$ 10,048,183$ 10,842,933$ 14,479,672$ 13,945,755$ 15,631,73640
Charts
Year 30Year 30Year 30Year 30Year 30Year 30
Immediate Distribution
IRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)
IRA Payable to Surviving Spouse (No Spousal Rollover)
IRA Payable to Surviving Spouse (Spousal Rollover)
IRA Payable to Oldest Non-Spousal Beneficiary
IRA Payable to Youngest Non-Spousal Beneficiary
Year
IRA Transfer to Family(The Power of Deferral)
Immediate
O & S Client
Inherited IRA Analysis
Immediate Distribution
OwnerRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
65N/A2007$ 1,000,000$ (1,000,000)$ - 0$ - 0$ - 0$ 600,000$ 48,000$ (4,800)$ 643,200$ 643,200
N/A2008$ 643,200$ - 0$ 51,456$ (5,146)$ 689,510$ 689,510
N/A2009$ 689,510$ - 0$ 55,161$ (5,516)$ 739,155$ 739,155
N/A2010$ 739,155$ - 0$ 59,132$ (5,913)$ 792,374$ 792,374
N/A2011$ 792,374$ - 0$ 63,390$ (6,339)$ 849,425$ 849,425
N/A2012$ 849,425$ - 0$ 67,954$ (6,795)$ 910,584$ 910,584
N/A2013$ 910,584$ - 0$ 72,847$ (7,285)$ 976,146$ 976,146
N/A2014$ 976,146$ - 0$ 78,092$ (7,809)$ 1,046,428$ 1,046,428
N/A2015$ 1,046,428$ - 0$ 83,714$ (8,371)$ 1,121,771$ 1,121,771
N/A2016$ 1,121,771$ - 0$ 89,742$ (8,974)$ 1,202,539$ 1,202,539
N/A2017$ 1,202,539$ - 0$ 96,203$ (9,620)$ 1,289,122$ 1,289,122
N/A2018$ 1,289,122$ - 0$ 103,130$ (10,313)$ 1,381,938$ 1,381,938
N/A2019$ 1,381,938$ - 0$ 110,555$ (11,056)$ 1,481,438$ 1,481,438
N/A2020$ 1,481,438$ - 0$ 118,515$ (11,852)$ 1,588,101$ 1,588,101
N/A2021$ 1,588,101$ - 0$ 127,048$ (12,705)$ 1,702,445$ 1,702,445
N/A2022$ 1,702,445$ - 0$ 136,196$ (13,620)$ 1,825,021$ 1,825,021
N/A2023$ 1,825,021$ - 0$ 146,002$ (14,600)$ 1,956,422$ 1,956,422
N/A2024$ 1,956,422$ - 0$ 156,514$ (15,651)$ 2,097,285$ 2,097,285
N/A2025$ 2,097,285$ - 0$ 167,783$ (16,778)$ 2,248,289$ 2,248,289
N/A2026$ 2,248,289$ - 0$ 179,863$ (17,986)$ 2,410,166$ 2,410,166
N/A2027$ 2,410,166$ - 0$ 192,813$ (19,281)$ 2,583,698$ 2,583,698
N/A2028$ 2,583,698$ - 0$ 206,696$ (20,670)$ 2,769,724$ 2,769,724
N/A2029$ 2,769,724$ - 0$ 221,578$ (22,158)$ 2,969,144$ 2,969,144
N/A2030$ 2,969,144$ - 0$ 237,532$ (23,753)$ 3,182,923$ 3,182,923
N/A2031$ 3,182,923$ - 0$ 254,634$ (25,463)$ 3,412,093$ 3,412,093
N/A2032$ 3,412,093$ - 0$ 272,967$ (27,297)$ 3,657,764$ 3,657,764
N/A2033$ 3,657,764$ - 0$ 292,621$ (29,262)$ 3,921,123$ 3,921,123
N/A2034$ 3,921,123$ - 0$ 313,690$ (31,369)$ 4,203,444$ 4,203,444
N/A2035$ 4,203,444$ - 0$ 336,276$ (33,628)$ 4,506,092$ 4,506,092
N/A2036$ 4,506,092$ - 0$ 360,487$ (36,049)$ 4,830,530$ 4,830,530
N/A2037$ 4,830,530$ - 0$ 386,442$ (38,644)$ 5,178,328$ 5,178,328
N/A2038$ 5,178,328$ - 0$ 414,266$ (41,427)$ 5,551,168$ 5,551,168
N/A2039$ 5,551,168$ - 0$ 444,093$ (44,409)$ 5,950,852$ 5,950,852
N/A2040$ 5,950,852$ - 0$ 476,068$ (47,607)$ 6,379,314$ 6,379,314
N/A2041$ 6,379,314$ - 0$ 510,345$ (51,035)$ 6,838,624$ 6,838,624
N/A2042$ 6,838,624$ - 0$ 547,090$ (54,709)$ 7,331,005$ 7,331,005
N/A2043$ 7,331,005$ - 0$ 586,480$ (58,648)$ 7,858,837$ 7,858,837
N/A2044$ 7,858,837$ - 0$ 628,707$ (62,871)$ 8,424,674$ 8,424,674
N/A2045$ 8,424,674$ - 0$ 673,974$ (67,397)$ 9,031,250$ 9,031,250
N/A2046$ 9,031,250$ - 0$ 722,500$ (72,250)$ 9,681,500$ 9,681,500
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 4
Non-DB Trust
O & S Client
Inherited IRA Analysis
IRA Payable to Non-Qualified Designated Beneficiary (i.e. 5-Year Rule)
OwnerRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
65N/A2007$ 1,000,000$ - 0$ 80,000$ 1,080,000$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,080,000
N/A2008$ 1,080,000$ - 0$ 86,400$ 1,166,400$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,166,400
N/A2009$ 1,166,400$ - 0$ 93,312$ 1,259,712$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,259,712
N/A2010$ 1,259,712$ - 0$ 100,777$ 1,360,489$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,360,489
N/A2011$ 1,360,489$ - 0$ 108,839$ 1,469,328$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,469,328
N/A2012$ 1,469,328$ (1,469,328)$ - 0$ - 0$ - 0$ 881,597$ 70,528$ (7,053)$ 945,072$ 945,072
N/A2013$ - 0$ - 0$ - 0$ - 0$ 945,072$ - 0$ 75,606$ (7,561)$ 1,013,117$ 1,013,117
N/A2014$ - 0$ - 0$ - 0$ - 0$ 1,013,117$ - 0$ 81,049$ (8,105)$ 1,086,061$ 1,086,061
N/A2015$ - 0$ - 0$ - 0$ - 0$ 1,086,061$ - 0$ 86,885$ (8,688)$ 1,164,258$ 1,164,258
N/A2016$ - 0$ - 0$ - 0$ - 0$ 1,164,258$ - 0$ 93,141$ (9,314)$ 1,248,084$ 1,248,084
N/A2017$ - 0$ - 0$ - 0$ - 0$ 1,248,084$ - 0$ 99,847$ (9,985)$ 1,337,946$ 1,337,946
N/A2018$ - 0$ - 0$ - 0$ - 0$ 1,337,946$ - 0$ 107,036$ (10,704)$ 1,434,279$ 1,434,279
N/A2019$ - 0$ - 0$ - 0$ - 0$ 1,434,279$ - 0$ 114,742$ (11,474)$ 1,537,547$ 1,537,547
N/A2020$ - 0$ - 0$ - 0$ - 0$ 1,537,547$ - 0$ 123,004$ (12,300)$ 1,648,250$ 1,648,250
N/A2021$ - 0$ - 0$ - 0$ - 0$ 1,648,250$ - 0$ 131,860$ (13,186)$ 1,766,924$ 1,766,924
N/A2022$ - 0$ - 0$ - 0$ - 0$ 1,766,924$ - 0$ 141,354$ (14,135)$ 1,894,143$ 1,894,143
N/A2023$ - 0$ - 0$ - 0$ - 0$ 1,894,143$ - 0$ 151,531$ (15,153)$ 2,030,521$ 2,030,521
N/A2024$ - 0$ - 0$ - 0$ - 0$ 2,030,521$ - 0$ 162,442$ (16,244)$ 2,176,718$ 2,176,718
N/A2025$ - 0$ - 0$ - 0$ - 0$ 2,176,718$ - 0$ 174,137$ (17,414)$ 2,333,442$ 2,333,442
N/A2026$ - 0$ - 0$ - 0$ - 0$ 2,333,442$ - 0$ 186,675$ (18,668)$ 2,501,450$ 2,501,450
N/A2027$ - 0$ - 0$ - 0$ - 0$ 2,501,450$ - 0$ 200,116$ (20,012)$ 2,681,554$ 2,681,554
N/A2028$ - 0$ - 0$ - 0$ - 0$ 2,681,554$ - 0$ 214,524$ (21,452)$ 2,874,626$ 2,874,626
N/A2029$ - 0$ - 0$ - 0$ - 0$ 2,874,626$ - 0$ 229,970$ (22,997)$ 3,081,599$ 3,081,599
N/A2030$ - 0$ - 0$ - 0$ - 0$ 3,081,599$ - 0$ 246,528$ (24,653)$ 3,303,474$ 3,303,474
N/A2031$ - 0$ - 0$ - 0$ - 0$ 3,303,474$ - 0$ 264,278$ (26,428)$ 3,541,325$ 3,541,325
N/A2032$ - 0$ - 0$ - 0$ - 0$ 3,541,325$ - 0$ 283,306$ (28,331)$ 3,796,300$ 3,796,300
N/A2033$ - 0$ - 0$ - 0$ - 0$ 3,796,300$ - 0$ 303,704$ (30,370)$ 4,069,634$ 4,069,634
N/A2034$ - 0$ - 0$ - 0$ - 0$ 4,069,634$ - 0$ 325,571$ (32,557)$ 4,362,647$ 4,362,647
N/A2035$ - 0$ - 0$ - 0$ - 0$ 4,362,647$ - 0$ 349,012$ (34,901)$ 4,676,758$ 4,676,758
N/A2036$ - 0$ - 0$ - 0$ - 0$ 4,676,758$ - 0$ 374,141$ (37,414)$ 5,013,484$ 5,013,484
N/A2037$ - 0$ - 0$ - 0$ - 0$ 5,013,484$ - 0$ 401,079$ (40,108)$ 5,374,455$ 5,374,455
N/A2038$ - 0$ - 0$ - 0$ - 0$ 5,374,455$ - 0$ 429,956$ (42,996)$ 5,761,416$ 5,761,416
N/A2039$ - 0$ - 0$ - 0$ - 0$ 5,761,416$ - 0$ 460,913$ (46,091)$ 6,176,238$ 6,176,238
N/A2040$ - 0$ - 0$ - 0$ - 0$ 6,176,238$ - 0$ 494,099$ (49,410)$ 6,620,927$ 6,620,927
N/A2041$ - 0$ - 0$ - 0$ - 0$ 6,620,927$ - 0$ 529,674$ (52,967)$ 7,097,634$ 7,097,634
N/A2042$ - 0$ - 0$ - 0$ - 0$ 7,097,634$ - 0$ 567,811$ (56,781)$ 7,608,663$ 7,608,663
N/A2043$ - 0$ - 0$ - 0$ - 0$ 7,608,663$ - 0$ 608,693$ (60,869)$ 8,156,487$ 8,156,487
N/A2044$ - 0$ - 0$ - 0$ - 0$ 8,156,487$ - 0$ 652,519$ (65,252)$ 8,743,754$ 8,743,754
N/A2045$ - 0$ - 0$ - 0$ - 0$ 8,743,754$ - 0$ 699,500$ (69,950)$ 9,373,305$ 9,373,305
N/A2046$ - 0$ - 0$ - 0$ - 0$ 9,373,305$ - 0$ 749,864$ (74,986)$ 10,048,183$ 10,048,183
&L&8(c) Robert S. Keebler, CPA, MSTVirchow, Krause and Company, LLPAll Rights Reserved&CPage 5
No Rollover
O & S Client
Inherited IRA Analysis
IRA Payable to Surviving Spouse (No Spousal Rollover)
OwnerS's AgeC's AgeRMD FactorYearBeginning IRA BalanceRequired DistributionGrowth @Ending IRA BalanceBeginning Outside BalanceNet IRA ReceiptsGrowth @Taxes on Growth @Ending Outside BalanceNet Wealth to Family
8.00%40.00%8.00%20.00%
656030N/A2007$ 1,000,000$ - 0$ 80,000$ 1,080,000$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,080,000
6131N/A2008$ 1,080,000$ - 0$ 86,400$ 1,166,400$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,166,400
6232N/A2009$ 1,166,400$ - 0$ 93,312$ 1,259,712$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,259,712
6333N/A2010$ 1,259,712$ - 0$ 100,777$ 1,360,489$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,360,489
6434N/A2011$ 1,360,489$ - 0$ 108,839$ 1,469,328$ - 0$ - 0$ - 0$ - 0$ - 0$ 1,469,328
653521.02012$ 1,469,328$ (69,968)$ 111,949$ 1,511,309$ - 0$ 41,981$ 3,358$ (336)$ 45,003$ 1,556,312
663620.22013$ 1,511,309$ (74,817)$ 114,919$ 1,551,411$ 45,003$ 44,890$ 7,192$ (719)$ 96,366$ 1,647,777
3719.22014$ 1,551,411$ (80,803)$ 117,649$ 1,588,257$ 96,366$ 48,482$ 11,588$ (1,159)$ 155,277$ 1,743,534
3818.22015$ 1,588,257$ (87,267)$ 120,079$ 1,621,069$ 155,277$ 52,360$ 16,611$ (1,661)$ 222,587$ 1,843,656
3917.22016$ 1,621,069$ (94,248)$ 122,146$ 1,648,967$ 222,587$ 56,549$ 22,331$ (2,233)$ 299,233$ 1,948,200
4016.22017$ 1,648,967$ (101,788)$ 123,774$ 1,670,953$ 299,233$ 61,073$ 28,825$ (2,882)$ 386,248$ 2,057,201
4115.22018$ 1,670,953$ (109,931)$ 124,882$ 1,685,9