Modeling Non-deductible IRAs
Submitted by Chris Andrysiak on Fri, 02/09/2018 - 15:09Does anyone have advice on the best way to model contributions to a non-deductible IRA in ESP?
Does anyone have advice on the best way to model contributions to a non-deductible IRA in ESP?
I note in my ESPlanner report that the program distributes more from my IRA than the Required Minimum Distribution to maintain the suggested consumption. That's fine with me but is there a way to see what the RMD and additional distribution amounts are in each year? Thanks.
I'm contemplating leaving full-time employment and taking a contractor job. That would be paid as 1099 wages. I see that ESP+ has a tab for self-employment income which is where I assume I'd record those earnings.
The SS section refers to copying income from the employee tab of the earnings section. But won't I have to pay into SS from my 1099 income? Is that income not reflected in SS history? If not automatically, how do I account for the fact I'd be paying self-employment payroll taxes?
Has anyone figured an efficient way to model retirement withdrawals from ROTH and traditional accounts? I figure it's some combination of ROTH and traditional each year and it can be tested on the special withdrawals screen, but it looks like it would take a lot of trial and error to figure it out. When I do withdrawals all from the traditional first, I end up paying no taxes at the end, which must mean I'd be paying too much tax early on, when it would make sense to seek a lower bracket.
I saw and was able to understand the previous tip from 2014 on how to model non-deductible IRAs future contributions in the special expenditures and special receipts tab. My feeble mind is having trouble figuring out best way to model an existing non-deductible traditional IRA balance. In my example, have one 3-year old traditional non-deductible IRA with after-tax contributions of $5500/year = $16,500, plus tax-deferred income of $1854 for total current balance of $18,354. Any additional tips or clarity from more advanced users on best way to enter this would be most appreciated.
My birthday is in the second half of the year, but Esplanner wants to start taking IRA withdrawals the year I'm 70 vs. the year I'm 70-1/2. Is there some setting I can change to get out to start the correct year?
Can ESPlanner model a non deductable IRA?
View our range of other financial planning products powered by the Economic Security Computation Engine
Disclaimer: The suggestions and recommendations provided by Economic Security Planning, Inc.'s software tools and planning services do not constitute financial or investment advice. The creators of Economic Security Planning's software are not certified, registered, authorized, or any other form of financial planners. Economic Security Planning, Inc. is not an investment adviser registered with the U.S. Securities and Exchange Commission or any state securities agency, is not a registered broker-dealer and maintains no other regulatory credentials associated with the management of financial assets. Economic Security Planning, Inc. does not guarantee that the suggestions and recommendations derived from its software tools and planning services will necessarily achieve a secure economic plan. Like any software products, Economic Security Planning, Inc.'s software tools may have errors in its underlying code, and the assumptions about the future that it makes and that users input may prove false. In addition, output from the software tools and planning services may incorporate data obtained from third parties and such data (including any calculations that is based on such data) is provided on an “as is” basis. From time to time the output may contain errors that may be based upon, among other things, human data entry, aggregation and decompilation of data, processing of data through third party calculation engines and other processes that can give rise to errors. The company's financial plans and recommendations, including all of such plans and recommendations provided by its direct planning services, should be viewed as suggestive and informative educational inputs into your financial decision-making. None of our products or services recommend the purchase of specific financial products.
Copyright © 2023, ESPlanner || Patent Number: US 6611807 B1
Design by Zymphonies