How can I use reports to show income without knowing my expenses.
I would like to add in all assumptions, pensions, annuities, investments and get a report to show me income return per year to expect including RMD at 70 etc. . It keeps giving me the same flat line income starting at 70 which is not how RMD's work.I feel like it is telling me what I need to withdraw/spend. And then how to put in order tax deferred vesus taxable accounts drawn down.Spousal benefits is also not calculating for the years of suspension. 66-70. It shows 0. I tried every possible variant
Sat, 03/18/2017 - 20:32
If you are seeing smooth
If you are seeing smooth withdrawals it's because you have set the age of first smooth withdrawal to begin at some age. If you want RMD only, then you should set first smooth withdrawal at age 75 or 80 or 85 etc. You can also indicate that you don't want to withdraw 100% of retirement assets. But the program will insist on the RMD. The nominal return on your assets is set in assumptions. The annual income is also shown in the Retirement Accounts reports under Details in the PDF.
Make sure, of course, that you've entered the earnings history for both husband and wife in SS earnings history. The settings are tricky so be sure that you don't confuse spousal benefit with benefit. Spousal benefit can begin at full retirement age. If you continue to have problems, create a support ticket and upload your database and I'll try to help.
Sat, 03/18/2017 - 23:51
Great thanks. The smoothing
Great thanks. The smoothing removal helped. For SSA planning I have the following scenario. My wife collects SSI federal disability benefits now at age 62. I will take my own SSA which is quite a bith higher at 67 which is in 3 years. That puts her into FRA as well age 66. So as I understand it she can at age 66 collect spousal benefits from my earnings and then suspend her SSA to grow to 70. I can't get the entries and dates correct to fill in all years leading up to 70 for both of us. It leaves zeroes into the years up to age 70 despite playing with the suspend checkboxes etc. I have another complication which includes tax treaty Canada Pension but I just added extra contributory years under SSA to adjust. Finally does you program calculate tax on SSA at a max of 85%? Thanks for you help
Sun, 03/19/2017 - 08:21
What you want to do is
What you want to do is no longer allowed by Social Security, your wife cannot receive any benefits while her retirement benefit is suspended. See our FAQ on the Bipartison Budget Act of 2015 below.
ESPlanner correctly calculates the taxable percent of Social Security, which may be as high as 85%.
How does the Bipartisan Budget Act of 2015 affect me?
The Bipartisan Budget Act of 2015 included significant changes to Social Security's rules. Our software is now fully updated to account for these new rules.
The new rules dramatically change Social Security claiming options and effectively divide each individual into one of three groups:
People born on or before May 1, 1950 will be the least affected, although if they plan to suspend their retirement benefit in the future, they must request to do so before April 29, 2016. Those born on or before May 1, 1950 who will have requested suspension by April 29 will still receive auxiliary benefits, i.e. spousal and child benefits, during suspension.
People born between May 2, 1950 and January 1, 1954 will see mixed effects of the new rules on their optimal benefits filing strategy.
People born on or after January 2, 1954 will be the most affected in terms of the effects of filing and suspending as well as not being able to file a restricted application for either just a spousal benefit or just a retirement benefit even after their full retirement age. They will not receive auxiliary benefits during suspension.
Individuals in groups 2 and 3, as well as married couples with at least one spouse in group 2 or 3, should recalculate their maximized strategy now that our software is updated to reflect the new rules. Here's how the new rules can affect you:
No one can collect a spousal or child benefit based on the covered earnings record of a worker who suspends retirement benefits on or after April 30, 2016, during the period that the worker's retirement benefit remains suspended. Those born after May 1, 1950 cannot file and suspend within this window and those born on or before May 1, 1950 must request to suspend on or before April 29, 2016 to allow auxiliary benefits to be claimed on his or her record while their retirement benefit is suspended.
No one who requests to suspend his or her retirement benefit on or after April 30, 2016 can collect an excess spousal or excess widow(er)'s benefit while their retirement benefit is suspended
For those born on or after January 2, 1954, deeming is extended through age 70. Deeming is the requirement that if you take your retirement benefit and are eligible for a spousal benefit or a divorced spouse's benefit, you need to also take your spousal benefit and vice versa. This leaves you with roughly the larger of the two benefits.
Only those who suspend their retirement benefit on or before April 29, 2016 will be able to receive a lump sum payment of previously suspended benefits. Those who suspend their retirement benefits on or after April 30, 2016 can no longer receive their suspended retirement benefits in a lump sum payment.
Those who are subject to deeming, but aren't deemed to be filing for their excess spousal benefits when they file for their retirement benefit because their spouse has not yet filed for his/her retirement benefit will be so deemed as of the date their spouse files for his/her retirement benefit.
Sun, 03/19/2017 - 09:40
Yes thanks. Is there a way to
Yes thanks. Is there a way to include tax treaty pension income. In other words can I add in Canada Pension which the IRS considers the same as SSA? My workaround was to fill in years of earnings as if I was in the US. That boosts up SSA.
Sun, 03/19/2017 - 10:21
You could just enter a series
You could just enter a series of special receipts indexed to inflation like SS is. I'm not sure what the tax consequences are for this stream of payments. With SS taxes on SS depend . . . which our our program accounts for.