Are there plans to update ESP to handle after-tax contributions and distributions to and from an IRA?
Submitted by BRDaniels on Tue, 06/14/2016 - 10:51
Both my wife and I have an IRA where the contributions are on an after tax basis. It took a lot of work on my part to properly model this with the current version of ESP, and it would be very, very helpful if the program would handle the contributions and distributions from these after tax IRAs. I am certain that my wife and I are not the only people with this type of IRA.
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dan royer
Tue, 06/14/2016 - 14:53
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I will certainly pass that on
I will certainly pass that on to Kotlikoff and the programmers. If I recall, you have to use special expenditures (no tax deduction) to indicate the contributions, then you have to separate the withdraws that are tax deductible from the withdraws that are not tax deductible. ROTH income restrictions keep you from being able to use a ROTH.
Tom Formhals
Mon, 06/27/2016 - 17:34
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Separate from handling within
Separate from handling within ESP, do you have other deductible IRA's which would affect simply converting the non-deductible IRA contributions to a Roth? If no other IRA's, you will want to convert the contributions to a Roth and reap the long term benefits of a Roth. (keep in mind that there are no income restrictions for conversions).