Contributions Window

[Kathleen Reynolds]

#4434

Click the Add Contribution button on the Income, Expenses, Contributions, and Distributions section to create a new Contribution item and display the Contribution Information window.

The Contribution Information window prompts you for information about the contribution:

• Enter a description
• the annual amount to contribute
• how much that amount should increase each year
• which account is being contributed to
• and the years the contribution will be made

If you are contributing to anything other than the Other Assets, you can choose where the contributions should come from. Select Outside Income if you want the contributions to come from outside the analysis.

If you are contributing to the Retirement Plan, you will also be able to indicate if those are Nondeductible Contributions. One way to illustrate the advantage of these contributions is to add the tax savings created by that contribution into the Other Assets fund. This lets the customer see how those tax savings add up over time. Select the appropriate checkboxes to illustrate this happening.

If the contribution starts in a future year, you also have the opportunity to apply the annual percentage increase in the amount from the first year of the analysis (instead of from the first year the contribution is made). This lets you type in the amount in today’s dollars, and then use an inflation rate for the annual increase.

If you wish to enter the contribution on a year-by-year basis, check the Use Custom Year-by-Year Contribution checkbox.

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