Cash Flow

[Kathleen Reynolds]

#3675

Please see below image for details on section inputs.

Income Streams
Entering income streams for the program will give a starting point to consider when calculating taxes for things like distributions and conversions. If you enter a stream, it will calculate the tax based on that stream – and when an event happens, like a distribution, the distribution will be added to the stream. The tax calculation will again occur, and the tax on the event would be the tax with the event less the tax without the event.

• Name Enter the name of the income that you are adding.
• Apply to Strategy This allows you to add the income to only certain strategies. For most cases, its suggested to select “All Strategies” so that each strategy can easily be compared.
• Social Security If the income is from Social Security, select “Yes”. The program will determine how much of the Social Security entered is taxable.
• Amount Enter the amount of the income.
• Start Year Enter the starting year for the income.
• End Year Enter the ending year for the income. The ending year of income is limited to be no greater than the death year (for married, death year of second to die).
• Inflation Adjusted If you select “No”, the “Amount” entered will be used for all years specified. If you select “Yes”, the “Start Year” will equal the “Amount ” entered, and each year after would be adjusted by the inflation amount you entered in the “Details” section.

Lifetime Expenses
Entering living expense streams for the program will be allowed for all years that the client (s) are alive. Years after their deaths are not considered. These expenses are satisfied by considering the liquidation order: a) after-tax RMDs for the year b) Taxable Asset fund c) Roth Funds d) IRA funds. If the expense is not satisfied in a year after it goes through all the available assets, it will be noted in the report.

• Name Enter the name of the expense that you are adding.
• Apply to Strategy This allows you to add the expense to only certain strategies. For most cases, its suggested to select “All Strategies” so that each strategy can easily be compared.
• Amount Enter the amount of the expense.
• Start Year Enter the starting year for the expense.
• End Year Enter the ending year for the expense. The ending year of expense is limited to be no greater than the death year (for married, death year of second to die).
• Inflation Adjusted If you select “No”, the “Amount” entered will be used for all years specified. If you select “Yes”, the “Start Year” will equal the “Amount ” entered, and each year after would be adjusted by the inflation amount you entered in the “Details” section.

Contributions from Outside Sources
Entering contributions to the existing accounts will be allowed for each person, for each account while the person is alive and has not reach retirement age.

• Apply to Strategy This allows you to add the contribution to only certain strategies. For most cases, its suggested to select “All Strategies” so that each strategy can easily be compared.
• Plan Owner This allows you to designate which owner the contribution is for.
• Asset Select which asset the contribution is for, based on the plan owner.
• Use Allowed Max Limit Depending on the asset you select, the program can use the maximum allowed contribution based on the year. If the amount is a projection (i.e. the IRS has not released limits for the year), then the program will use the last released value and apply inflation to it, if you choose. If you select “No”, then the user needs to enter the contribution amount
• Amount Enter the amount of the contribution.
• Start Year Enter the starting year for the contribution.
• End Year Enter the ending year for the contribution. The ending year of contributions is limited to be no greater than the death year (for married, death year of second to die), and checks to see if the owner has retired.
• Is Non-Deductible If the contribution is non-deductible, select “Yes”. When “Yes” is selected, the contribution will be added to the asset, as well as the unique schedule of remaining non-deductible balance remaining.
• Inflation Adjusted If you select “No”, the “Amount” entered will be used for all years specified. If you select “Yes”, the “Start Year” will equal the “Amount ” entered, and each year after would be adjusted by the inflation amount you entered in the “Details” section.

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