Voyant allows you to model both spousal and non-spousal inherited IRAs and applies different distribution rules depending on how the account was inherited.
How do I enter an inherited IRA?
Enter the account in the Retirement section and select Inherited IRA as the account type.
If the IRA was inherited from a spouse, turn on the Inherited from Spouse option. Voyant will then apply the appropriate rules for a spousal inherited IRA.
If the IRA was inherited from someone other than a spouse, such as a parent, leave Inherited from Spouse turned off.
How are non-spousal inherited IRAs distributed?
Voyant models the applicable Required Minimum Distributions (RMDs) for the inherited IRA and applies the 10-year distribution rule where applicable.
For an account subject to the 10-year rule, such as an IRA inherited by an adult child, Voyant will ensure that the full remaining balance is distributed by the end of the 10th year following the inheritance.
This means the account does not necessarily need to be distributed evenly over the 10-year period.
What if I want to distribute the inherited IRA sooner?
If you want to model additional distributions before the mandatory final distribution, you can use Planned Withdrawals.
For example, if you want to model the client drawing down the inherited IRA evenly over several years rather than waiting until year 10, schedule Planned Withdrawals from the inherited IRA for the desired years and amounts.
Voyant will then model those withdrawals alongside any applicable required distributions.
In summary: Select Inherited IRA, indicate whether it was inherited from a spouse, and Voyant will apply the applicable inherited IRA distribution rules. Use Planned Withdrawals when you want to model a specific withdrawal strategy beyond the required distributions.