My client has no taxable assets. (All assets held in qualified funds). I have not entered any annual taxable savings. Yet I see an accumulation of taxable funds at his retirement date, 10 years hence. Where does this come from?
Hello,
This occurs from the Required Minimum Distributions from Qualified. When they reach 70.5 the program calculates the RMDs, subtracts taxes, and puts what’s left into Taxable. If the money is needed that year, then it will be used. If it’s not needed, then you will see it accumulate.
Does this help?
Thank you.
My client is currently 54 years old. I am looking at the accumulation at age 64, before the
RMDs start. Could the software be assuming that he is living on less than he earns, and saving
The extra. I have not entered any taxable savings
You would have to send us the actual data file so we can open it here and look.
Other than the RMDs I don’t know without looking at it.
-Tim
Here is the file. Looking at the saving graph, advance it 10 years, and watch the taxable investments grow. Cannot figure out where this is coming from.
On cash Infusions you have a line for PLANO RETIREMENT which is getting added to… TAXABLE
because it starts at age 54 BEFORE retirement. If that is some sort of pension,
you need to make sure they are indeed SAVING that money and not spending it.
if they are SAVING it ALL before retirement, then you have entered it correctly.
If they are SPENDING it all before retirement, then push the start age back to retirement age
and skip the incoming amounts that they are spending as part of their income because
they would not be useful to their retirement.
Regards,
- Tim Turner
Torrid Technologies Inc.
1860 Sandy Plains Rd., Suite 204-129
Marietta, GA 30066
Main Phone: 888.333.5095
Direct Phone: 770.579.6224
http://www.torrid-tech.com (http://www.torrid-tech.com)
RetirementView Software for Windows or Mac
- Quick, Simple, Visual Retirement Income Planning
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Thank you- creates a big change in what I was presenting to the client. But I see the logic.