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How do Special Withdrawals Work?

Submitted by jdupton on 20 January 2010 - 8:44pm

I seem to be doing something wrong. I cannot get a special withdrawal to work for the current year.

I was trying to model retirement this year by doing the following:

1. Set retirement to 1/1/2011

2. Enter this years partial salary earnings in 2010

3. Set Pension date to begin 2011

3. Enter this years partial Pension earnings as a Special Receipt in 2010

4. Set last contribution to 401K as 2010 and enter partial year data

5. Set first Smooth Withdrawal to 2011 (Forced to do so by the UI)

6. Enter a Special Withdrawal for 2010 roughly equal to a guessed amount in line with the smoothed withdrawals calculated by ESPP.

When I run this profile, the reports never show a withdrawal from the 401K in 2010. If I also enter two or three additional years of special withdrawals, the others show in in the report as withdrawal for the future years but 2010 is always zero.

How do I force a withdrawal in 2010?

John

‹ Withdrawal before age 59 1/2 Smooth Withdrawal - Percent of assets at what point in time? ›
Submitted by Dick Munroe on 21 January 2010 - 6:38am.
1

There may be a bug here. I don't recollect trying to set a special withdrawal in the current year.

Best,

Dick Munroe

Submitted by james300@comcast.net on 22 January 2010 - 12:11pm.
2

Dick, I set a special withdrawal from my IRA for 2010 and 2011 which was greater than the RMD and the smooth withdrawal amount ESPlanner had previously calculated. BUT I set the start of smooth withdrawals to start in 2012. The results, ESPlanner ignored my special withdrawals and did a smooth withdrawal beginning in 2010. When I reset the smooth withdrawals to begin in 2010 ESPLanner did what I expected: the special withdrawal amounts in 2010 & 2011 & then a smooth withdrawal of the remaining funds starting in 2012.

Regards
James Mavrogenis

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