Roth IRA Annuitization---How ESPlanner Handles Tax Impact

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Just wanted to make sure I understand how annuitization of Roth IRA amounts is handled as to tax calculations.

Scenario A: All IRA amounts are traditional. 25% of the account is annuitized in year 2011.

Scenario B: Same as Scenario A, except 50% of the annuitized balance consists of Roth amounts.

My understanding is that the calculated annual annuity will be the same in both cases, but that the taxable amount of the annuity will be less in Scenario B and that this lower taxable income will be reflected in ESPlanner were I to compare the two scenarios.

The non-annuitized IRA amounts will be withdrawn in the order I specify (e.g. Traditional first, Roth second) and taxable income will reflect this choice.

Do I have things straight here, in particular as to how ESPLanner handles annuitization of IRA balances that have Roth amounts, and the subsequent taxable income effect?

Thanks

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Submitted by pharri1244@aol.com on 25 June 2009 - 12:26pm.
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