Tax Free Cash Infusion


We often use Index Universal Life to build up tax free income in retirement. The premium could be like $20,000 per year for 10 years. In year 11 I may withdraw 14,000 per year tax free to age 100.
To enter this I went to Special Expenses and entered $20,000 age to start and for how many years. I then went to Cash infusion and entered $14000 age to start enter age and duration I put the number of years. Tax Free.
When I hit add to plan, only the Special Expenses show up the Cash Infusion does not.


The last column is not the tax status of the infusion. The last column on Cash Infusions is "where does the money go one received".  To make a tax free infusion you just set the Tax Rate to apply when it comes in to 0%.

The last column is “which bucket do you add this money to” and only Taxable infusions show up on the graph.  It does not go into Tax Free but probably a Taxable checking account.  Since the graph is an after tax graph it does not show the Tax Free on the retirement graph because that is more for rollovers.  Set that line to Taxable in the last column and you should be good.

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