How do I model accelerated IRA withdrawals prior to taking Social Security?


I'm retiring at 63 and won't take Social Security until 70. The Esplanner financial model withdraws an even amount of money from my IRA from 63 until death and that results in low incomes taxes from 63 until 70 and then much higher taxes after that when I start collecting SS. (85% of my SS income will be taxable).

Esplanner also draws down heavily from my *after-tax* assets between 63 and 70 to maintain my overall income which is reasonably balanced over our retirement lifetime.

Tax Rates


I'd like to see somewhere the specific tax rates that ESPlanner Plus uses in the tax calculation. My federal tax rate, my state tax rate and my marginal tax rate.

I realize that Esplanner does not have everything on actual tax forms.

Tax Rates


Its been awhile since I've written. In the runs of my reports taxes are much higher than I actually pay. For NC state taxes, it probably has to do with the tax rate which has changed to a flat 5.75%. The state tax rate I'm calculating is over 6% in your program. For Federal Taxes my average tax rate from your report is around 25%, but the average tax rate I'm actually paying is <20%.

Have you thought of having the ability for users to input tax rates. For example I would put in 5.75 for NC. I would also put in the actual average tax rate I'm paying for Federal taxes.

Earnings & Taxes during Retirement


This is my 3rd run of ESPlanner since I retired June 1, 2013. Last year, and this year 2016, I have done a bit of consulting.
1) Am I correct to put that Income on the Earnings page under Self Employment Earnings after setting the retirement age to 1/1/2016?
2) Will the program then treat me as retired for the entire 2016?

Assumptions > Taxes - What does Percentage change in taxes really mean?

Under Assumptions > Taxes:
Is the data item "Percentage change in taxes" expressed in points or pct? If my marginal rate is 35%, would a 2% value in this field take it to:
- 37% (ie - a 2-point increase) OR
- 35.7% (ie - a 2% increase)
I'm guessing the latter, but it would be nice if the explanation in the online help would clarify that.


Property taxes

I live in CA, which has capped the nominal increases in property taxes (with some exceptions that don't presently apply to me) at 2% per year.
ES Planner is escalating my property taxes each year, despite the fact that my taxes are capped at a 2% increase, even when inflation is higher, such as the 3% default rate. The real dollars amount for me should go down 1% per year.
Is there a way to adjust the increase? Using a special receipts entry might work, but would leave the housing expenses wrong.

How accomplish a 401k close & transfer using Net Unrealized Appreciation (NUA) tax treatment

I'm planning on using the Net unrealized appreciation (NUA) tax rule when I close out my 401k in a future year.
How do I accomplish this in ESPlanner Plus?
Example situation: $130,000 value of stock in 401k, cost basis $70,000 (taxable event at transfer to taxable account ), NUA $60,000 (after 12 months taxed as Long Term Capital Gain

I've tried the following but ESP doen't appear to handle the taxs correctly:

Social Security Bridging Strategy

I am 64 and plan on retiring next year around my 65th birthday. My FRA for Social security is 66. My wife is 5 years younger than me. She has a much smaller SSA benefit amount based on her own record, so we will use her spousal benefit. I am planning to wait until age 70 to claim my SSA benefit and we will likely claim my wife's spousal benefit at about the same time (which should be slightly below her maximum possible).

During the period between age 65 and 70 I will need to use my 401k and some after tax money to make up for the missing social security payments.