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How to account for 401k rollovers to a Roth IRA

Hi,

The software is working fine.  However, is there a way to account for 401k rollovers to a Roth IRA between ages 59 ½ up to age 70 in the scenarios?  It doesn’t appear as though that’s an option to explore in the software – or am I missing something?  Would there be a manual way to do it?

 

ANSWER:

Sure here is how:

-          Enter a Special Expense for the full amount from the 401k and set last column to “Tax Deferred Only”  This will pull the exact amount out of the 401k

-          Calculate the net amount of the rollover… i.e. the gross minus taxes

-          Go into Cash Infusions and enter this net amount as “Roth IRA rollover” or something like that.  Then set the last column to add it into the Tax Free bucket

 

 

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