When a client with an IRA is ready to begin taking withdrawals, the SIPS plan offers several ways to initiate them. For this how to article, we will focus on using the Annual Fixed Savings Function to withdraw money from the SIPS plan for a specifc time frame. Below is a hypothetical client we will use as an example:
Client Information:
- John Doe, age 60; birth date: 01/01/1966; retirement age: 67
Incomes:
- Wages: $175,000 growing at 2.8%; Social Security (SS) at 67: $40,000 COLA at 2.8%
Assets:
- Taxable Brokerage Account (BA): $1,000,000; Conservative, 2% net growth per year
- Tax-Deferred Traditional 401(k): $2,000,000, Conservative, 2% net growth per year
- Tax-Deferred Individual IRA: $850,000; Conservative, 2% net growth per year
Goals and Objectives:
- Would like to retire at their full retirement at age 67.
- Target Income: The first year will start at $100,000 with an inflation factor of 2.8%. When in retirement, the target income will start at $80,000 and continue to grow at 2.8%.
- Tax-Deferred Individual IRA: Contribute the full amount until the age of 67 and starting in retirement years will withdraw a yearly amount of $12,000 until the RMD are being withdrawn.
- Tax-Deferred Traditional 401(k): Contribute 5% to receive the employer match ($8,750 employee and $8,750 employer) until the age of 67. In retirement years, withdrawal amounts to meet the RMD.
- Taxable Brokerage Account (BA): Contribute the yearly excess amount from the target income until the age 67 and when retirement starts withdrawing to meet the target income. When there are excess amounts in retirement years, reinvest it back into the Brokerage Account.
Step 1: Edit: Click on the green Edit button underneath the Structured Income Planning subheading. 
Step 2: Manage: Click on the green Manage button within the Tax Deferred IRA column. 
Step 3: Annual Fixed Savings: Click on the Annual Fixed Savings radio button.
Step 4: Annual Fixed Savings Textbox: Enter the monetary amount that you would like to withdrawal. Withdrawals are modeled as a negative number. (-12,000)
Step 5: Income Data Checkbox: Click on the text boxs of the years that you would like the withdrawals to happen. 
Step 6: Pick year(s): Click on the green button Pick year(s). 
Step 7: Income Data Table: SIPS will automatically have the term "savings" appear in the income column, and the numeric amount will be in the variable column of the table. 
Step 8: Save: Click on the green button Save underneath the Manage Account subheading. 
Step 9: Structured Income Planning Page: SIPS will automatically take you back to the Structured Income Planning page. The Tax-Deferred IRA income column will automatically show the changes. 
If you feel you need more support or would like to set up demo time with one of our representatives, please contact us at: support@planscout.com
