The Planned Distribution Method setting determines how required minimum distributions and manually added income distributions will interact with each other. You can find this setting within the Gear Icon > Settings > Methodology tab of each client plan:
The default setting for the planned distribution method is RMD added to manual distribution. With this option selected, RightCapital will combine income distributions with the calculated RMD amount in years where both occur (the sum of RMD and other distributions).
For example...
Let's say you've entered an income distribution card into a client's plan, and set it to distribute $10,000 from the client's 401(k) in 2025. If the client also has a 401(k) RMD of $50,000 in 2025, the full distribution amount for that year will be $60,000.
$10,000 manual distribution + $50,000 RMD = $60,000 in 2025
The second option is Greater of RMD and manual distribution. With this option selected, RightCapital will choose the higher of income distributions and calculated RMD amounts in years where both occur (whichever is greater).
For example...
Let's say you've entered an income distribution card into a client's plan, and set it to distribute $10,000 from the client's 401(k) in 2025. If the client also has a 401(k) RMD of $50,000 in 2025, the full distribution amount for that year will be $50,000.
$10,000 manual distribution < $50,000 RMD = $50,000 in 2025
The last option is No RMD, manual distribution only. With this option selected, RightCapital will not automatically calculate RMDs within the projections. Only manual distributions entered with income distribution cards will be reflected.
Become a Distribution Expert:
An important part of choosing a planned distribution method for a client is understanding how RightCapital calculates RMDs, and how manual distributions are modeled. You can learn more using the links below:
