Setting Up IRA Payout Settings (2)

Screen ID:

Screen Title:

Panel Number:

UIRAPY-02

IRA Payout Information

2312

This second screen is used to record basic details and comments about the payout status of this member's IRA plan. This screen is also used to calculate the Required Minimum Distribution amount to be used when planning payout amounts for the current year. Remember that this amount changes each year as the member ages.

When done, use Add/Update (F5) to record all changes to return to the previous screen.

HINT: As a shortcut, Beneficiaries (F10) allows quick access to the beneficiary information screen for this member. After using Save/Update on that screen, this screen will reappear and Add/Update can be used to complete the update.

CU*TIP: Use Auto Transfer/Check (F14) to access the AFT/CFT system and set up either an automatic transfer or an automatic check distribution from the member's IRA accounts every month.

If asterisks appear on this screen, it is due to the privacy settings.

Field Descriptions

Field Name	Description
Fair Market Value	The total balance of all of this member's IRA accounts, as taken from the IRA Balance File, effective December 31 of the previous year.
YTD Distributions	The total amount of distributions that have been taken from the member's IRA accounts for the current year. This is taken from the IRA Balance File records, which are updated whenever a transaction involving an IRA account is performed.
Plan Type	The Plan Type for this IRA plan. Remember that payout information is set up separately for each Plan Type.
Life Expectancy	This flag is used when calculating the Required Minimum Distribution Amount. Enter one of the following to indicate how the member wishes the RMD to be calculated: Single (S) - RMD is calculated using the life expectancy tables for the primary IRA owner only; no beneficiary information is used in this calculation. Joint - (J) RMD is calculated using the life expectancy for both the IRA owner and the first primary beneficiary. NOTE: In order for the “Joint” calculation to work properly, at least one primary beneficiary must have been entered on the IRA Beneficiaries screen. If necessary, use Beneficiaries (F10) to toggle to that screen and update beneficiary information for this member. The Uniform Table (Table III) will be used for both the Single or Joint unless the Primary Beneficiary is the Spouse, is more than ten years younger, and is the Sole Beneficiary (% 100). In this case Table II is used. These tables can be found in IRS Publication 590.
Required Minimum Distribution Amount	This amount is calculated by the system according to the Life Expectancy settings, using the IRS Life Expectancy tables. The final calculation shows the total amount that is required to be paid out of the member’s IRA plan each year once age 72 is reached. Remember that this amount will change from one year to the next as the member ages.
Elect to Waive RMD for Year of	This field can be used if the member has elected to take distributions from another institution for a particular year, and will therefore not be taking a distribution from the credit union during that time.
Comments	Because a member can elect to receive their required minimum distribution in many different ways (cash, check, automatic transfer, etc.), this screen does not include exact details about how this member is electing to receive payout. The Comments field is available for notes regarding this member's wishes.