Planning Around RMDs Just Got Easier
We just rolled out Required Minimum Distribution (RMD) support in Nauma. See how it may change your financial projections.
What Are RMDs?
RMDs (Required Minimum Distributions) apply to U.S. retirement accounts like Traditional IRAs and 401(k)s. Once you reach a certain age, the IRS requires you to withdraw a minimum amount each year, even if you don’t need the money. This amount is calculated using a formula based on your account balance as of December 31 of the prior year.
Why RMDs Matter
RMDs are one of the most important (and often overlooked) factors in retirement planning:
They trigger taxable income: Distributions are taxed as ordinary income and push you into a higher tax bracket, increase your medicare premiums and affect the taxation of your Social Security benefits
They affect cash-flow planning: You might need to withdraw less from your taxable accounts or move money from tax-deferred to taxable accounts starting age 73.
They affect estate planning: Leaving large tax-deferred accounts to heirs means they inherit future RMD obligations. This can create large, compressed tax bills for your family.
What Changed in Nauma
Nauma now automatically accounts for RMDs in your family projections. This impacts both income tax estimates and account balance forecasts.
Example 1: RMDs lower the estimated value of tax-deferred accounts.
Example 2: RMDs increase projected income taxes.
What You Should Do
Review your updated financial projection, make adjustments to your plan if needed. Double-check that each tax-deferred account has the correct account owner set in Module 2 (Assets & Liabilities) and the owners have their age set properly in Module 1 (Family Members).
If something looks off, please let us know.
One quick favor
We’re deciding what to build next and opened a discussion in our community. If you have a minute, please drop by and share your thoughts. It means a lot to us and really shapes where we take Nauma next. For that please go to Nauma and click "Community Feed".
Thanks as always for being part of this journey,
Alex and Simone