Minimum Distributions Calculator
Contents
1. 19 Pint SOLIUS euet obe de eg 8 19 PRTG iste ht eise copied cest teta ecu 19 Program Title aes 3 Program Version Number 9 Q Qualified Pension Plan 10 R Recalculate Spouse s Life Expectancy after Rolo YE 14 Report Options idolo 21 REPO iube eB eae 17 Required Beginning Date 26 Rollo srl rin 13 Roth IRA ornigha 10 25 32 S SaVIDg ssi ive NIIS TAE IN BRE USES 7 Spousal Rollover 13 T Technical Support ici id 23 Term Certain toi us eet d 26 TRIG ecc m 22 bip 8 Lie Bab oes cop RUEDAS 3 diete or EE T M S 5 Type of Plan noni 10 31 32 V MIC WINE ctio stipe eub D CURED NAR 8 W WiINdOWS isaac teta tue 1 21 Y Medus or e a e sive ct ecc eia ut 17 Year of First Required Distrib 10 Year of First Required Distrib 10 Z ZS OWN RA le tea es 19 342. 8 16 18 31 Timing lodo 8 16 Distributions Graph 17 E Esla ines 23 lod EET 8 Expected Plan Growth 10 Index F File MO oreste dte oco este 4 Files O ds a o SURE tANN 7 Nomad 7 Dena Suede ee ene 7 PEIUS ae 8 c 7 Save ASh a ta EUR 8 iri rl TEES 26 First Year cit di 15 First Year of Analysis 9 Dunotton Keys sod Gore etie spinae 5 G Growithidaten Soa opa aeos 15 H Headin tee a eis 21 Help ertet to eo hh epa ter rome e 23 Help MENU ietan 4 23 Help Syst m idee detras 23 Hit e ane oue 10 A a 3 I INCOME uis Sui HEU MD RT 16 Jnstallatioh us eo dee etes 1 J Joint or Single Life Exp 10 L Life Expectancies c bee eee edes 25 Life Expectancy Factor 18 Living EXpenses a los pasa 16 M MDIB 15st dasi en eee anat pU 26 Menu Bar usas putres eens 3 33 Minimum Distribution Incidental Benet os Ceo O poni 26 Minimum Distributions 3 9 31 Minimum Distributions Options 26 Minimum Distributions Report 17 N Normal cnica 10 32 Number of Copies to Print 22 O DI aque orieaianigesiencar ses F Options Menu ida i 4 Owner s Birth Date 10 P Page Margins nee etnia 21 Page Numbers meca iia 22 Pension Fund Graph 17 Plan Balance ui 17 A AN 8 20 Print Report Window
3. For details on the types of plans that the program considers qualified see Chapter 11 Reference Material Minimum Distributions Calculator Year of First Required Distrib 12 31 previous year Balance Expected Plan Growth Is there a Designated Beneficiary Owner s Birth Date Beneficiary s Birth Date Assume Death Occurs If the Type of Plan is Normal or Roth IRA the program enters the Year of First Required Distrib If the plan is a lt 5 Owner plan enter the date of your client s first required distribution in the Retirement box Enter the value of all assets in the plan as of the end of the previous year Enter the expected annual percent increase of the plan Select whether there is a designated beneficiary by clicking yes or no Enter the plan Owner s Birth Date in day month year format If an owner s birth date is before 1917 the program displays a warning in the Hint Line The minimum distributions rules for owners with birth dates prior to 1917 are more complex and may be different than the current rules Therefore the program bases its calculations on minimum distributions rules after 1917 see Proposed Treas Reg Sec 1 408 8 for IRAs and 1 401 a 9 for Qualified Plans Enter the Beneficiary s Birth Date in day month year format The program uses the beneficiary s birth date to determine joint life expectancy factors as well as a single life expectancy for the beneficiary Click Assu
4. or special incidental or consequential damages or other similar claims even if Brentmark has been specifically advised of the possibility of such damages In no event will Brentmark s liability for any damages to you or any other person ever exceed the lower of suggested list price or actual price paid for the license to use the software regardless of any form of the claim BRENTMARK SOFTWARE INC SPECIFICALLY DISCLAIMS ALL OTHER WARRANTIES EXPRESS OR IMPLIED INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE Specifically Brentmark makes no representation or warranty that the software is fit for any particular purpose and any implied warranty of merchantability is limited to the 60 day duration of the Limited Warranty covering the physical diskette s and physical documentation only and not the software and is otherwise expressly and specifically disclaimed 31 Minimum Distributions Calculator The limited warranty gives you specific legal rights you may have others that may vary from state to state Some states do not allow the exclusion of incidental or consequential damages or the limitation on how long an implied warranty lasts so some of the above may not apply to you Governing Law and General Provisions The License Statement and Limited Warranty shall be construed interpreted and governed by the laws of the State of Florida and any action hereunder shall be brou
5. 1 401 a 9 2 Q amp A Q 3 If the owner made an appropriate election before the required beginning date a joint term certain method will be used after the plan owner s death rather than just a single life term certain for the beneficiary in cases where the owner was using a recalc method Minimum Distributions Options Required Minimum Distributions Calculations under the Final Regulations After more than a decade of proposed regulations final minimum distribution regulations were published on April 17 2002 These new rules are based primarily on the proposed regulations of 2001 but they do add some new calculation wrinkles to consider As with the 2001 proposed regulations the final regulations keep the basic calculation intact Each year the distribution is calculated by dividing the previous year s ending balance by a life expectancy number The calculation complexity lies in determining the life expectancy number Here s how the new rules work 24 Chapter 11 Reference Material Situation 1 Owner still alive If the owner is still alive the life expectancy is taken straight from the Uniform Lifetime Table Simply find the owner s age on the table it covers ages 70 through 115 and use the life expectancy listed For this situation the only change caused by the 2002 final regulations was to update the numbers in the Uniform Lifetime Table Prior to 2001 the Uniform Lifetime Table was known as the MDIB table
6. Entered Year Click to enter a year of death for the Owner or Beneficiary 11 Minimum Distributions Calculator Rollover and Beneficiary Information Input Description No Rollover Rollover Occurs at Death of Owner Entered Year Spouse Has a Designated Beneficiary Spouse s Beneficiary s Birth Date Recalculate Spouse s Life Expectancy after Rollover Click to indicate that no rollover occurs Click to indicate that the plan should roll over upon the owner s death Click to enter the year of a spousal rollover Click to indicate that the spouse names a beneficiary You can then enter the heir s birth date and minimum distribution method for the spouse Enter the birth date for the heir Click to use a recalculation method for determining the spouse s minimum distributions 12 Chapter 6 Including Contributions amp Additional Distributions Contributions Use the Enter Contributions to the Qualified Plan dialog box to enter any contributions to the plan This feature lets you illustrate money accumulating in the plan prior to the required distributions To enter contributions click the Specify Contributions button in the Main window Annual Amount Growth Rate First Year Last Year 0 0000 2000 o 0000 2000 0 0000 0 0000 0 0000 2000 Note These contributions are added to the fund at the beginning of each year just after the distribution amount is withdraw
7. be 2004 s number minus 1 The life expectancy in the year after death is of course calculated using the new single life expectancy table and as with Situation 2 an existing term certain would have to be recalculated using the new table The 2002 final regulations add another wrinkle to those situations when the owner died on or after the required beginning date In these situations the life expectancy used is the greater of the one calculated using the no beneficiary case situation 2 and the one resulting from the calculation described in the previous paragraph This can get a little confusing because the no beneficiary case starts with a term calculated in the year of death while the nonspousal beneficiary s term certain starts the year after the owner s death Situation 4 Owner dies with spousal beneficiary In the year of death the minimum distribution is still calculated according to Situation 1 above It s only in the years after the owner s death that this situation applies When the owner dies with a spousal beneficiary the spouse gets special treatment In this case the distributions are based on the spouse s single life expectancy recalculated each year after the owner s death If the owner dies prior to the calendar year in which he would have reached age 70 the spouse does not have to start taking distributions until that year Upon the spouse s death the distributions become term certain with
8. descriptions of the choices that the program provides Normal This is the most common selection if the plan owner is retiring on or before age 70 and the plan is not a Roth IRA Roth IRA The Taxpayer Relief Act of 1997 created the Roth IRA There are no required distributions until the year after the plan owner dies The required beginning date of minimum distributions from a Roth IRA is the year after the owner s death At that point the minimum distributions are calculated based on the beneficiary s single life expectancy If the beneficiary is the Roth IRA owner s spouse the election to recalculate the beneficiary s single life expectancy each year after the required beginning date is available For nonspousal beneficiaries the life expectancy is calculated once and reduced by one for each year after the required beginning date lt 5 Owner Use this selection if the owner is planning to retire after age 70 2 and owns no more than 5 of a company with a pension plan that is not an IRA If the plan owner owns no more than 5 of a company with a pension plan that is not an IRA the required minimum distributions are delayed until the retirement year 30 License Agreement This software is protected by both United States copyright law and international treaty provisions You must treat this software just like a book except that you may copy it onto a computer to be used and you may make archival copies of the software f
9. irrevocable as of the required beginning date 23 Minimum Distributions Calculator Trusts must benefit an individual or a specified class of individuals so that the life expectancy can be determined Trusts must be copied and a copy must be given to the plan administrator by the required beginning date Minimum Distribution Incidental Benefit MDIB Non spousal distributions will be subjected to the Minimum Distribution Incidental Benefit MDIB requirement see IRC Proposed Treas Reg 1 401 A 9 2 The MDIB requirement states that any distribution occurring after the required beginning date must be less than the distribution that was calculated by dividing the balance of the plan by the MDIB Table divisor found in IRC Proposed Treas Reg 1 401 a 9 2 Q 4 Generally when the non spousal beneficiary is more than ten years younger than the plan owner the MDIB is triggered and results in a joint life expectancy factor regardless of the actual age of the non spousal beneficiary Thus during the lifetime of the plan owner but after the plan owner reaches age 701 there is no difference in the minimum distribution payout amount regardless of whether the non spousal beneficiary is 15 or 30 years younger than the plan owner is The program always removes the MDIB limitation after the plan owner s death Authority for Removal of MDIB after the death of the plan owner is found in IRS Publication 590 and IRC Proposed Treas Reg
10. the File menu click Reopen File A list of files you ve worked on recently will appear Select the file you wish to open Save a File Onthe File menu click Save Or on the toolbar click the Save graphic 2 Ifthe file has not been saved previously the Save As dialog box appears 3 In the File name box type a name for the file The program automatically adds PDC extension to the file name 4 Select the drive and folder in which to save the file Save an Existing File Save As 1 Open an existing file or create a new file Minimum Distributions Calculator 2 On the File menu click Save As Or on the toolbar click the Save graphic The Save As dialog box appears 3 In the File name box enter a name for the new file The program automatically adds the proper extension to the file name 4 Select the drive and folder in which you want to save the file Access the Print Report Window e On the File menu click Print Set up a Printer 1 On the File menu click Print Setup The Print Setup dialog box appears 2 For help with setting up a printer click Hl in the Print Setup dialog box Exit the Program 1 On the File menu click Exit A Warning appears 2 To save your data and create a file click Yes The Save As dialog box appears 3 Save the file 4 To close the program without saving your data click No To continue running the program click Cancel Take Distributions at the End of the Year
11. By default all fund activity takes place at the beginning of the year This includes required minimum distributions and any additional distributions If you prefer you can have all fund distributions occur at the end of the year e On the Options menu click Take Distributions at End of Year View the Program in 16 Colors e On the Options menu click 16 Color Display The program appears in 16 colors instead of 256 colors Chapter 4 Calculating Minimum Distributions To calculate required minimum distributions you ll enter data in the portion of the program pictured here By default all fund activity takes place at the beginning of the year This includes required minimum distributions any additional distributions and any contributions To make all fund distributions occur at the end of the year on the Options menu click Take Distributions at End of Year j First Year ol Analysis Type af Plan Drets Birth Date Beneficiary s Birth Date Beneficiary is Spouse amp Assume Death Occurs Benef Info Minimum Distributions Options 2002 Rules 2001 Prop Reqs 2001 Aubes Li Recalculate Owners Life Exp O Recalculate Raenaficiangs Life Exp Ni q Specify Distributions 1 speci Contributions Minimum Distributions Calculation Table of Inputs Input Description First Year of Analysis Enter the first year of the analysis Type of Plan Select the type of qualified plan
12. Copies to Print 1 Access the Print Report window 2 In the Number of Copies box enter the number of selected reports that you want to print Print Page Numbers There are two ways to include page numbers on printed reports e In the Print Report Window click the Page Numbers check box e Under the Select Printing Options heading in the Report Options window click the Print Page Numbers check box 20 Chapter 10 Getting Help If you need help it s easy to find Click the question mark wherever it appears in the program and a Help topic appears for the window in which you are working Also use the Help menu and if you still need help Brentmark provides technical support Help Menu Use the Help menu to access the Help system learn how to use Help or view information about this product and other Brentmark products Help System The program provides a complete Help system so you can get help whenever you need it Just click the question mark that appears in the top right corner of every data entry section Use the Help system s table of contents to view Help topics by category or search the Help index for specific terms Technical Support Technical Support is available by telephone fax e mail or postal mail If you have questions concerning program calculations please have a list of your exact data entry values available when contacting us Telephone Assistance by telephone is available Monday through Friday b
13. IRA owner the annual election to recalculate the beneficiary s single life expectancy after the required beginning date is available For non spousal beneficiaries the life expectancy is calculated once and it is reduced by one for each year after the required beginning date Non spousal beneficiaries have additional limitations placed on their calculated distributions A non spousal beneficiary is not permitted to recalculate his or her life expectancy in each year For minimum distributions non spousal distribution calculations are subject to the MDIB requirements The program automatically handles both of these additional limitations for you If there is more than one person named as the beneficiary for example children of the plan owner the age of the beneficiary with the shortest life expectancy must be used to calculate the joint life expectancy If a charity or the plan owner s estate is named as the beneficiary there is no designated beneficiary and funds must be withdrawn over the plan owner s life expectancy A trust can also be named as the beneficiary In such cases the life expectancy of the trust s beneficiary can be used to calculate the joint life expectancy If the trust does not meet the following rules then only the life expectancy of the plan owner may be used to calculate distributions Trusts must be valid under state law or would be valid under state law if it had a trust corpus Trusts must be
14. Minimum Distributions Calculator Software and User Manual version 6 00 Copyright 1995 2002 Brentmark Software Inc All Rights Reserved August 7 2002 Brentmark Software Inc 3505 Lake Lynda Drive Suite 212 Orlando FL 32817 8327 Sales 1 800 879 6665 Technical Assistance 407 306 6160 Fax 407 306 6107 www brentmark com sales brentmark com support brentmark com comments brentmark com Table of Contents Chapter I ici A O ce ded 1 Installation eG 1 Installing the Pro rr Mito AO Ea 1 Uninstalling the PO A a aid 1 Cliapler2 coni ndn ic ionic d c v aO cv n3 Iniroduceimo the Program rea De e do e eure S 3 Welcome to the Minimum Distributions Calculator eene 3 What Do I See on the Screen a a a a A E A O E NT RE 3 Title Bat acu eee edet AAEE TE EE E TEE EE NE 3 M nu Bar uev ie Lis e Deni toii 3 Ple Mena ia doit EE 4 Options MERE a 4 Help Menu m 4 Hebr UR 5 Data Entry AAA A REEE AA 5 Command Buttons c aet oii E obe IH rol eb ER ITI 5 VLSI AY so BC ast dadas cota A ek a hanced ec seit i cL ec met reU 5 Hine Lies 5 tei nn 5 T unctione ys o e eo eee a eels lee eae n ai ee 5 Chapter instalara Working with Biles scort diante Lo aiie 7 Brequenthy Used Proced f Sa stas URL a heap a T a TESS 7 Create a Ne A OS AI 7 Open an Existing File etes y ab 7 Deseos lir e a e a aotenni 7 Savea a1 8 gear Se ee een Oe et Re nee A E 7 Save an Existi
15. They eliminated a lot of complexity reduced the number of decisions made by a plan owner These regulations eliminated the old recalculation options There is no hybrid method or joint term certain method However the new methodology does still have some similarities to the old For example the distribution is still calculated by dividing the previous year s balance by a life expectancy number Here s how it works Situation 1 Owner still alive If the owner is still alive the distributions are based on the divisor found in the MDIB table for owner s age The MDIB table is a published table of joint life expectancies for an owner and a beneficiary who is ten years younger than the owner It simplifies the calculation to only using the owner s age No beneficiary information is needed and no recalculation options are available There is only one exception to this rule for cases involving spousal beneficiaries that are more than ten years younger than the owner Situation 2 Owner dies with nonspousal beneficiary When the owner dies with a nonspousal beneficiary a term certain distribution period is established based on the designated beneficiary s single life expectancy in the year after the owner s death As with the old term certain method this life expectancy is simply reduced by one for each year after it is calculated Situation 3 Owner dies with no beneficiary This is the only situation where the owner s required b
16. and was used only for nonspousal beneficiaries Now it is used whenever the owner is alive making the distribution calculation very straightforward There is only one exception to this rule cases involving spousal beneficiaries who are more than ten years younger than the owner In that case the joint life expectancy of the owner and spouse is used Once the owner dies this exception no longer applies and Situation 4 see below applies Situation 2 Owner dies with no beneficiary In the year of death the minimum distribution is still calculated according to Situation 1 above It s only in the years after the owner s death that this situation applies If the owner dies before the required beginning date and there is no beneficiary alive as of the owner s death the five year rule applies all the money has to be distributed within five years of the year the owner died If the owner dies on or after the required beginning date and there is no beneficiary alive as of the date of death distributions after the owner s death are taken over a term based on the owner s life expectancy in the year of death This calculation is easier than it sounds For the year after death subtract one from the owner s single life expectancy in the year of death As each year passes reduce the life expectancy by one For example if the owner died in 2003 the distribution in 2004 would be based on the owner s 2003 life expectancy minus one The new life e
17. ated Then click the Browse button to view your available drives and choose the default file location View Distributions Report Click the title of the report or graph to view it View Balance Graph View Distributions Graph Help Menu Click Help for this Screen to see the online help system for the active screen Help Click Contents to view Help topics by category Click Search Help System to view the Help index Help for this Screen Fi Click Minimum Distribution Calculation for reference material aoe Click Brentmark on the Web to visit our website or Pese cue contact us via e mail Minimum Distribution Calculation Click Product Line for information about other Brentmark on the Web gt Brenmtark products Predict line Click License Agreement to view the single user license agreement estis ac dmi Click Technical Support to get phone email and Technical Support other contact information Product Registration Click Product Registration to register your copy of About the software Click About to view version contact and other important information Chapter 2 Introducing the Program Toolbar The toolbar is below the menu bar The toolbar contains graphics that you click to execute frequently used program commands You can use these graphics instead of using the related Menu bar commands Brentmark Online Save Files so all Print Files Get Help Data Entry Section A da
18. d Regulations 27 1987 Proposed Regulations Pre 2001 Rules eene 28 Type of Pana oe one uu ac adea eu epa 29 INGUINAL acidos 30 RoOMDIRA cocidas 30 A 25 Sp ts ass eed a olii bd ica Riiie tat epe i P er Peas 30 License A xuussii 2i re A sosoca isos suos vistotoos esses vS desero isos vo v i st ro 31 Limited Warranty ioeie ioni op atu RES aE etu a h Ea i 31 Governing Law and General Provisions eese 32 do e N 33 lii Chapter 1 Getting Started Installation Getting started with the Minimum Distributions Calculator is easy Before you install the program be sure that you re running a Windows 95 or later operating system The Minimum Distributions Calculator does not run on Windows 3 1 or earlier operating systems Installing the Program 1 2 3 Insert the disk into the disk drive On the Windows Taskbar click the Start button On the Start menu click Run The Run dialog box appears In the Open box Ansetup EXE should appear If it doesn t type A setup EXE Click OK 5 The setup program begins Follow the instructions in the setup program Uninstalling the Program l Pa 3 On the Windows Taskbar click the Start button Point to Settings and click Control Panel The Control Panel window appears Click Add Remove Programs The Add Remove Program Properties dialog box appears Use the scrollbar to find
19. e other options for printing All report options are automatically saved so the next time you run the program you don t have to reformat your reports Access the Report Options Window There are two ways to access the Report Options window e On the Options menu click Report Options e In the Print Report window click the Report Options button Create a Heading for a Report 1 In the Report Options window click the Heading box 2 Type the text that you want to display at the top of your printed report Format Page Margin e Under the Page Margins heading in the Report Options window enter the Top Bottom Left and Right page margins in inches Format the Text of a Report 1 Under the Fonts heading in the Report Options window click the text you want to format The Font dialog box appears 2 Select the Font Style Size and Effects to apply to the text and click OK 3 Notice that the description of the text in the Report Options window has changed Print for Windows NT e Under the Select Printing Options heading in the Report Options window click NT Style Printing 19 Minimum Distributions Calculator Print the Date and Time There are two ways to include the date and time on printed reports e In the Print Report window click the Date and Time check boxes e Under the Select Printing Options heading in the Report Options window click the Print Date and Print Time check boxes Select the Number of
20. eginning date is relevant If the owner dies before the required beginning date and there is no beneficiary alive as of 12 31 of the year following the owner s death the five year rule applies all the money has to be distributed within the next five years If the owner dies after the required beginning date and there is no beneficiary alive as of 12 31 of the year following the owner s death the distributions are taken out over a term based on the owner s life expectancy in the year of death Once again this works the same as the old term certain method with the life expectancy being reduced by one for each year that passes after the owner s death Situation 4 Owner dies with spousal beneficiary 27 Minimum Distributions Calculator When the owner dies with a spousal beneficiary the spouse gets special treatment In this case required distributions are generally based on the spouse s single life expectancy in each year after the owner s death If the owner dies prior to the calendar year in which he would have reached age 70 the spouse does not have to start taking distributions until that year However if the owner dies before 12 31 of the calendar year in which he would have reached age 70 and the spouse also dies before 12 31 of the calendar year in which the original owner would have reached age 70 then the second to die spouse is treated as the new owner with the rules of Situation 2 being applied if the sec
21. etween 9 00 AM and 6 00 PM Eastern Standard Time at 407 306 6160 Fax For assistance by fax send your fax to 407 306 6107 E mail For assistance via e mail send your remarks to support brentmark com 21 Minimum Distributions Calculator Postal Mail For assistance by postal mail write to Brentmark Software Inc 3505 Lake Lynda Drive Suite 212 Orlando FL 32817 8327 In your correspondence please include the following information e The name to which the program is registered e A contact phone number e The program name and version number e Your system configuration e A sample printout or description of the problem e A list of any error messages that have appeared Brentmark on the Web e On the toolbar click the globe graphic to access Brentmark s website 22 Chapter 11 Reference Material To keep procedures short and free of lengthy discussions this manual refers to the following material The material is listed alphabetically Beneficiary If plan owners designate a beneficiary the minimum distribution rules allow plan owners to withdraw retirement plan funds over the joint life expectancies of the plan owner and the beneficiary When you include a beneficiary in your analyses the program uses joint life expectancy factors based on the ages of the plan owner and beneficiary Generally the term beneficiary refers to an individual If the beneficiary is the spouse of a Roth
22. ge determined using single life Table V and the owner s actual age the program uses joint life Table VI to determine the minimum distribution Many planners recommend this method when the plan owner is older than the beneficiary Hybrid method Only click the Recalculate Beneficiary s Life Exp check box The beneficiary s life expectancy is recalculated and the owner uses the term certain method Using the owner s deemed age determined using single life Table V and the beneficiary s actual age the program uses joint life Table VI to determine the minimum distribution Planners recommend this variant when the beneficiary is older than the plan owner Type of Plan The program calculates required minimum distributions for the following types of pension plans e Corporate and self employed pension profit sharing and stock bonus plans qualified under IRC Sec 401 a includes Keogh or H R 10 plans 401 k plans and employee stock ownership plans or ESOPs e Individual Retirement Accounts IRAs under IRC Sec 408 a e Simplified Employee Plans SEPs under IRC Sec 408 k and e Tax sheltered annuities except for account balances existing on 12 31 86 if kept separate for accounting purposes under IRC Sec 403 b The Minimum Distributions Calculator classifies retirement plans into three groups 29 Minimum Distributions Calculator When calculating minimum distributions you need to select a Type of Plan Following are
23. ght only in Florida If any provision is found void invalid or unenforceable it will not affect the validity of the balance of this License and Limited Warranty which shall remain valid and enforceable according to its terms If any remedy hereunder is determined to have failed of its essential purpose all limitations of liability and exclusion of damages set forth herein shall remain in full force and effect This License and Limited Warranty may only be modified in writing signed by you and a specifically authorized representative of Brentmark All rights not specifically granted in this statement are reserved by Brentmark 32 lt 5906 Owner coocccccccccnononnnanicicccnnnnnnns 10 32 1 16 Color Display sees 8 A PDC ae dede act Quad een idee tica ats 17 Annual Amount 15 Assume Death Occurs 11 Assumed Dates of Death 13 Autoload eec nnn 7 B Benef Info eee 11 Beneficiary indias 25 Beneficiary s Birth Date 10 Brentmark Software Inc 24 C Calculated Year of Death 13 Calculations MDIB inusitada eei tede 26 CLOSE usto e e etu e Ue Per oes 8 Command Buttons eee 5 ContributionS cccccnnnnncccncnccnononos 15 18 D Data ENV z e a 5 Dalenni a a a Aa TASAS 22 Dates of Death eee 11 Display ATC 5 Distributions
24. he view Print a Report 1 On the File menu click Print Or on the toolbar click the Print graphic The Print Report window opens 2 Click the reports and graphs that you want to print 3 Select printing options 4 Click the Print Report button 5 For more printing options click the Report Options button 17 Minimum Distributions Calculator Print to File 1 On the File menu click Print Or on the toolbar click the Print graphic The Print Report window opens 2 Click the Print to File button The Print to File window opens 3 Select from one of four file types which you can edit or send as e mail attachments Text file saves the file with a txt extension which can be opened in any word processor Spreadsheet file saves the file with a WK1 extension which can be opened in Excel Lotus or Quattro Pro HTML saves the file with an html extension which is used most commonly on the Internet but can be read by most word processors DOC if you have Microsoft Word 97 or later saves the file with a doc extension which can be opened in Word 4 Click the Create File button The Save As window opens Enter a file name and specify a directory to which the file should be saved 18 Chapter 9 Formatting Reports Report Options Window Use the Report Options window to format your reports and graphs for printing The Report Options window allows you to create headings format text and layout and includ
25. ions WIndOW 5 iii dette bepiei eens caida 19 Create Heading Tor a Repott ie cis eee uit eui oit vett vet ede e aste autres 19 Lormat Page Marsih unto 19 Format the Text of a Report cei e een ter aeo rs te en ges ev VERE Pe p a Eire tuo 19 Print fOr Windows NT otitis oli 19 Print the Date and Time cs e a o ee 20 Select the Number of Copies to Print nei iei ee eel 20 Print Page NUDES ipods 20 Chapter lO arrancar a ed Getting H lPeromidne MR 21 O 21 lec T nem 21 Technical Support ca siscccsasdayessadesaceectasausicstasasead avieavosatehasesla E A E toa snavaate Ear n 21 TSS PHONG C 21 Y o A o deel 21 Table of Contents Ema esd so unisce nu uon RA Nn dui 21 Postal Mal EEEE E EEE et reseser tires terea cof Sor eet e edo ied soda See tece 22 Brentmark on the Web ccsceccccsssscececvsseecccnssecccccsssecccsvveecesvveeccasvecccesvsesceaaves 22 Reference Material Mmm 23 Beneficiar Vai nr na a A A AEE E E A A 23 Minimum Distribution Incidental Benefit MDIB occccnnnnnncanannnononnnnnnnananonononnoninnnnns 24 Minimum Distributions OPUS it decuit ipa Deuda eque a A eae 24 Required Minimum Distributions Calculations under the Final Regulations 24 Calculating Required Minimum Distributions using the 2001 Propose
26. life expectancy factors the program uses the ages of the Owner and or the Beneficiary and applies them to the minimum distribution rules This column lists the distributions in each year This includes any distributions you enter in the Enter Plan Distributions box and the minimum distribution in each year To calculate the minimum distribution amount the program divides the Plan Balance by the Life Expectancy factor This column lists the total contributions in each year If you have not specified contributions the column does not appear 16 Chapter 8 Printing Reports amp Graphs Print Report Window Use the Print Report window to select reports and graphs for printing and to select printing options for more printing options see Report Options window Also from the Print Report window you can save a report as a Text or Spreadsheet file Before printing be sure that your printer is set up and that you ve formatted your printed reports in the Report Options window Set up a Printer 1 On the File menu click Print Setup The Print Setup dialog box appears 2 For help with setting up a printer click 2 in the Print Setup dialog box Access the Print Report Window There are three ways to access the Print Report dialog box e On the toolbar click the Print graphic e On the File menu click Print Preview a Report e In the Print window click Print Preview In the Print Preview window click Zoom to magnify t
27. me Death Occurs and the Benef Info button to enter Assumed Dates of Death and Spousal Rollover information Note To include a spousal rollover you need to click the Assume Death s Occur s check box Then click the Benef Info button 10 Chapter 5 Including Dates of Death and Spousal Rollovers Use the Enter Assumed Dates of Death dialog box to account for the death of the plan owner or the beneficiary Also for cases in which the plan owner dies you can indicate when a spousal rollover will occur To enter dates of death and spousal rollovers click Assume Death Occurs check box and the Benef Info button in the Main window ma 88 mono 0009 SS M wee se ee oo Enter Assumed Date of Death for Owner O Mo Death Owner Survives Analysis Calculated Year of Death 007 t Entenzd Year Enter Assumed Date of Death for Beneficiary D Nn Death Heneficiany Survives Analysis Calculated Year of Death 7034 OEnimred Year 0 Enter Spousal Rollover information O Na Folbower Rollover Oecurs at Death of Cwnar C Entened Tear Enter Spouse s Beneficiary amp Spose has a Designated Benehiciany Spouse s Beneficiary Birth Date MEENT O Recalculate Spouse s Lile Exp After the Fosllanges Dates of Death Description Input No Death Click to indicate that the Owner or Beneficiary does not die during the analysis Calculated Year of Death Click to use the assumed date of death based upon the birth dates
28. n Generally additional contributions cannot be made after the required beginning date Input Description Annual Amount Enter the annual amount of each contribution Growth Rate Enter the annual percent increase of the contribution First Year Enter the first year that the distribution is needed Last Year Enter the last year that the contribution is needed 13 Minimum Distributions Calculator Distributions Use the Enter Desired Plan Distributions dialog box to enter additional distributions to an analysis For example your clients might make distributions to other assets or use distributions for living expenses You can model the analysis so the entire fund is distributed in one year or over a period of years By default all fund activity takes place at the beginning of the year This includes required minimum distributions and any additional distributions To make all fund distributions occur at the end of the year on the Options menu click Take Distributions at End of Year To enter distributions click the Specify Distributions button in the Main window Annual Amount Growth Rate First Year Last Year 0 0000 2000 0 0000 200 0 0000 0 0000 0 0000 Note The program uses these distributions whenever they are greater than the calculated minimum distribution The program will not allow the distributions to drop below the calculated minimum The program always distributes at least the required minim
29. ng File Save AS ia aane olini e e TE T HA E seas Mesas 7 Access the Print Report WandOw ieri tris e tee ed samioesdadayqussasbonesgaccsdessncedans 8 Set Up A Pri A 8 Exit Cie O PAIN ad ceelys eae tto eb ant et eii mars ua aud d 8 Take Distributions at the End of the Y eara eoa rae etre e epa Deus 8 View the Program in 16 Colors nette eerie e e aer n SR E SERO ARE SS dR EY Re RAE cons 8 Chapter MMC Calculating Minimum Duistributions eiue p ipsapeqeec ja tada 9 Minimum Distributions Calculator C hapter 5 BERR RRR RR EERE R RRR 11 Including Dates of Death and Spousal Rollovers eee 11 Chapter ica cia Lo Including Contributions amp Additional Distributions eee 13 CONIL io 13 DiS tri DULIONS aita tette PR alter A i a 14 N 1G abiur c sa es 15 REPONS ame Em 15 Viewing Reports and GIapbis ione eiue ax icula pnis i e Messe ei add 15 Distrib tions Report since aies 15 Chaplin LE Printing Reports 6c Graphs cioe etie eit 17 Print Report Window os ie b nse cda 17 Set Up a wird at 17 Access the Print Report WIBOW sli id 17 Preview a Report soc a O 17 Print a Report soe ee eben NE A ARE A S RR 17 Print to Plesi stet e doutes sb e eae e s turpi A E 18 Formatting Reports oue e n t De RR id diia is 19 Report Options Window cad isis 19 Access the Report Opt
30. ond to die spouse has a designated beneficiary or Situation 3 if there is no designated beneficiary If the spouse dies after the year in which the original owner would have turned 70 the distributions become term certain with the term set to the spouse s life expectancy in the year of death Again this works the same as the old term certain method with the life expectancy being reduced by one for each year that passes after the spouse s death Situation 5 Owner dies and a spousal rollover When the owner dies with a spousal beneficiary the spouse has the option of doing a spousal rollover with the spouse becoming the new owner In such a case the rules of Situation 1 apply after the spouse becomes the new owner Situation 6 The Exception to Situation 1 The exception to situation 1 is when there is a spousal beneficiary who is more than 10 years younger than the owner In this case the life expectancy used while the owner is alive is the joint life expectancy of the owner and spouse recalculated in each year Once the owner dies the exception no longer applies and the distribution is handled according to the situations described above 1987 Proposed Regulations Pre 2001 Rules If the plan owner has not named a beneficiary then there are two methods for determining the plan owner s life expectancy each year Term Certain method or Recalculation method Use the Recalculate Owner s Life Exp check box to determine the method Te
31. or the sole purpose of backing up our software and protecting your investment from loss You must also agree not to reverse engineer the software By saying just like a book Brentmark means for example that this software may be used by any number of people and may be freely moved from one computer location to another so long as there is no possibility of it being used at one location or on one computer while it is being used at another Just as a book cannot be read by two different people in two different places at the same time neither can the software be used by two different people in two different places at the same time unless of course Brentmark s copyright is being violated Limited Warranty Brentmark Software Inc warrants the physical diskette s and physical documentation enclosed herein to be free of defects in materials and workmanship for a period of 60 days from the purchase date If Brentmark receives notification within the warranty period of defects in materials or workmanship and such notification is determined by Brentmark to be correct Brentmark will replace the defective diskette s or documentation The entire and exclusive liability and remedy for breach of this Limited Warranty shall be limited to replacement of defective diskette s or documentation and shall not include or extend to any claim for or right to recover any other damages including but not limited to loss of profit data or use of the software
32. ormation e Program Title e Program version number e File name if the file has been saved Menu Bar The Menu bar is below the title bar The Menu bar contains three menus that you use to make program commands File Options Help Minimum Distributions Calculator File Menu File Options Help New Open Reopen rien Save Save As Zi F3 F2 Print Print Setup F6 Exit Options Menu Options Help Specify Distributions Additional Contributions C C C C CD CD ick New to create a new file ick Open to open an existing file ick Reopen File to select a file from a list of recent files ick Save to save the file with which you are working ick Save As to save the current file with a different name or to a different location ick Printto open the Print Report window ick Print Setup to select a printer and printing options ick Exitto close the program ick Specify Distributions to enter additional distributions ick Additional Contributions to add contributions C Take Distributions at End of Y ear ick Take Distributions at End of Year to distribute required C C C minimum distributions at the end of the year C C C ick Report Options to format your reports Report Options ick 16 Color Display to view the program in 16 colors 16 Color Display ick File Location to select the folder where the data will be Fas ocean loc
33. rm Certain method Clear the Recalculate Owner s Life Exp check box The program uses Table V to determine the owner s life expectancy in for the Required Beginning Date first year that distributions are required Thereafter the program subtracts one from the life expectancy each year Recalculation method Click the Recalculate Owner s Life Exp check box The program uses Table V to determine the life expectancy each year 28 Chapter 11 Reference Material If the plan owner has named a beneficiary Plan owners and beneficiaries have the ability to recalculate their life expectancies annually see Note If the plan owner has named a beneficiary then there are actually four methods of calculating life expectancies each year Use the Recalculate Owner s Life Exp and the Recalculate Beneficiary s Life Exp check boxes to determine the method Joint Recalculation method Click both check boxes Both life expectancies are recalculated The program uses Table VI to determine the minimum distribution from the life expectancies Joint Term Certain method Clear both check boxes Neither life expectancy is recalculated Both the owner and the beneficiary use the term certain method Both life expectancies decrease by 1 annually Hybrid method Only click the Recalculate Owner s Life Exp check box The owner s life expectancy is recalculated and the beneficiary uses the term certain method Using the beneficiary s deemed a
34. ta entry section appears in the left side of the window Use this section to calculate minimum distributions Command Buttons Three command buttons appear below the data entry section Use these to enter additional distributions contributions and dates of death information Display Area The right side of the window is the display area Here you can view graphs or reports that display the results of the calculations Hint Line The Hint Line displays short commands to help you with data entry As you move the pointer across buttons input boxes and other areas of the window the Hint Line displays different commands Function Keys Use the function keys for frequently used commands F1 Access the Help system F2 Save files F3 Open files F6 Print reports F7 Create a new file Minimum Distributions Calculator Chapter 3 Working with Files Frequently Used Procedures Refer to this chapter to view instructions for procedures that you ll frequently use when working with files Create a New File On the File menu click New The program clears all previous data entry and resets the program s default values Open an Existing File 1 On the File menu click Open Or on the toolbar click the Open graphic The Open dialog box appears 2 In the File name box enter the name of the file and the proper extension Be sure you have selected the proper drive and folder that contain your file Reopen File e On
35. the Minimum Distributions Calculator When you find it click the program title Notice that the Add Remove button is now functional 5 Click the Add Remove button The uninstall program begins Follow the instruction in the uninstall program Minimum Distributions Calculator Chapter 2 Introducing the Program Welcome to the Minimum Distributions Calculator The Minimum Distributions Calculator calculates the minimum distributions required after a plan owner reaches age 70 You can apply any minimum distribution method including the Hybrid method To make the calculations more realistic you can enter a limited number of distributions for living expenses and a limited number of contributions to the fund Also you can enter the assumed dates of death for the owner and beneficiary and you can indicate when and if a spousal rollover occurs The program projects fund balances into the future so you can forecast future distribution requirements You can view a distributions report illustrating the plan balance life expectancies and minimum distributions Also view a fund graph that shows the fund balance as it changes over time or a graph that displays the annual distribution amount What Do See on the Screen When you run the program the Minimum Distributions Calculator window opens Following are brief descriptions of what you see Title Bar The title bar appears in the top of the window It contains the following inf
36. the term set to the spouse s life expectancy in the year of death This works the same as the old term certain method with the life expectancy being reduced by one for each year that passes after the spouse s death As with situation 3 the 2002 final regulations add more complexity For cases where the client dies on or after the required beginning date the life expectancy used is the greater of the one calculated using the no beneficiary case situation 2 and the one resulting from the calculation described in the previous paragraph When do these apply In 2002 there is the option of using either the pre 2001 proposed regulations with all their calculation and recalculation options the 2001 proposed regulations and the 2002 final regulations After 2002 only the 2002 final regulations may be used The 2002 final regulations added more than just a new mortality table to these calculations They also added complexity When all the different situations listed above are taken together they represent a fairly complicated set of calculations that have to be correctly performed to make sure you calculate the correct distribution for your clients 26 Chapter 11 Reference Material 2002 Brentmark Software Inc All Rights Reserved Calculating Required Minimum Distributions using the 2001 Proposed Regulations The regulations released on 1 11 2001 radically changed the way minimum distributions have to be calculated
37. um distribution so don t worry if the distribution is too small If you enter a distribution that is larger than the fund balance the program distributes the balance 14 Chapter 7 Viewing Results Reports The program displays calculation results in a report and two graphs e Distributions Report e Distributions Graph e Balance Graph Viewing Reports and Graphs On the Options menu click the report or graph that you want to view v View Distributions Report View Balance Graph View Distributions Graph Distributions Report The Distributions Report displays the following information Column Description Year This column lists each year that the program calculates a distribution By default the program displays years of death in red You can change the color in the Report Options window Age This column lists the owner s age in each year Even if the owner is dead the owner s age appears in this column Plan Balance This column lists the total amount of money in the owner s qualified plan in each year To calculate the Plan Balance for each year the program uses the following formula 15 Minimum Distributions Calculator Life Expectancy Factor Distribution Contribution Current Plan Balance 1 Expected Plan Growth Calculated Distribution Contributions This column lists the life expectancy factors that the program uses to calculate the minimum distribution To calculate the
38. xpectancy tables used by the 2002 final regulations add some complexity to cases where the owner has already died If distributions are being taken under this scenario the length of the term has to be recalculated using the 2002 single life expectancy table For example if a plan owner died in 1995 the 2003 distribution would be based on the owner s life expectancy using the new table in 1995 reduced by 8 Under the 2001 proposed regulations the beneficiary had to be alive as of 12 31 of the year following the owner s death to be considered valid Under the 2002 regulations the beneficiary only has to be alive when the owner dies to be considered Situation 3 Owner dies with nonspousal beneficiary In the year of death the minimum distribution is still calculated according to Situation 1 above It s only in the years after the owner s death that this situation applies When the owner dies with a nonspousal beneficiary a term certain distribution period is established based on the designated beneficiary s single life expectancy in the year after 25 Minimum Distributions Calculator the owner s death Unlike Situation 2 in this case the term is based on a life expectancy calculated in the year after the owner s death rather than the year of death For example if the owner died in 2003 the life expectancy used as the divisor in 2004 would be the beneficiary s single life expectancy in 2004 In 2005 the divisor used would
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