I am reviewing the free trial version of your software to see if it meets my financial planning needs, and have the following questions:
1. How do you get federal taxes displayed in the spreadsheet?
2. How do you establish a "reserve account" (an amount of your taxable savings or Roth IRA not to be spent expect for an emergency)?
3. How do you take excess/additional withdrawals from your tax- def ered accounts (above what is needed for your annual income needs) and tran sfer these withdrawals to your Roth IRA or your taxable savings account? The reason for these excess/additional withdrawals is to only pay taxes at the 15% rate, rather than have an emergency occure in the future and have to pay taxes at a 25% (or higher) rate on a large withdrawal.
Thanks for you help,
Tom
Tom,
To answer your questions:
1). We don't show the taxes on the spreadsheet so there is not a way to display them. It is just an estimate and we frankly don't want support calls about why the estimate is not as accurate as Turbotax.
2). If the amount is not related to retirement, then it's not really something our software is set up to handle. All investment pools are available to be liquidated for the retirement income needs. HOWEVER, you can set aside money as Cash Infusion that grows and then you add it into the plan at a much older age, or at the end of the plan. This is really the only way to grow a side fund that the program will not tap.
3). You could enter a Special Expense for the excess amount and pull it directly from Tax Deferred. Then enter a Cash Infusion for the same amount and add it into the Tax Free bucket.