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.

Tax Free (Until Withdrawal) Investment

How do you express/input after tax funds invested in a time locked investment which is sheltered from all taxes until it's withdrawn? I currently have it "other assets" but I fear that those funds are assumed to be subject to taxation during their tenure. There are several, each with a different date of maturity and rate of return. Perhaps they ought to be entered into 'Special Receipts' as non-taxable instead?

Predictable tax credits


I have two kids in college. One of them being a senior, I have experience getting educational tax credits. I'm considering adding those tax credits as non-taxable income in the years I anticipate getting them. (My son is a freshman so I have 3 more years to look forward to, assuming Congress doesn't eliminate them.) I'd be conservative in my estimates but it's money in the pocket that is otherwise ignored.


Dependent child over the age of 24


I had included my kids as dependents until age 25 but just read the IRS regs which sets the limit for claiming them as exemptions at age 24. I'd like to include them in the economy as 0.6 of an adult until age 25, but exclude them for tax exemption purposes as of age 23.

Any suggestions? Perhaps add a taxable special receipt equal to the exemption amount per person, for age years 24 and 25? That would offset the income reduction of the tax exemption without decreasing the effect of their expenses on discretionary spending.


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