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Enter a descriptive name, the balance of the plan, the basis, the appreciation rate, the after-tax income rate, the type of ownership, and who the beneficiary is. Answer yes or no to whether withdrawals are subject to income tax. Enter the value of the asset as of the Valuation Year entered on Step 2: Assets & Liabilities.Qualified Plan in Community Property States when spouse is not the beneficiary
When entering information regarding a qualified plan that is also a community property asset, the entry is in two steps:
Example: Qualified Plan = $1,000,000
Step 1: Under “Assets” select “Qualified Plan”, Enter one-half of the plan balance ($1M/2 = $500,000). You may want to be creative in naming this since you are dividing the asset “Spousal CP of Qualified Plan”. In the “Beneficiary” select “spouse”.
Note: This properly places the correct amount in the spouse’s estate and provides the community property amount. It also shows up on the spouse’s schedule of Assets.
Step 2: Under “Assets” select “Qualified Plan”, Enter one-half of the plan balance ($1M/2 = $500,000). Suggested Name could be something like “Plan Owner’s Com Prop”. In the “Beneficiary” select “None” – in which case it becomes an estate asset; OR non-spouse, in which case it becomes the asset of the chosen beneficiary. When there is more than one non spousal beneficiary then the one-half amount needs to be divided by the number of non-spousal beneficiaries and each one has to be entered separately.
Answer the question Place Required Min. Dist in Portfolio? If you answer yes, required minimum distributions are invested in the portfolio. If you answer no, required minimum distributions are considered to be spent.
Roth IRA – if the qualified plan is a Roth, then answer Yes. This allows withdrawals to be excluded from income tax.
Click the Contributions button to enter information about contributions that should be made.
Click the Withdrawals button to enter information about withdrawals that should be made.
Click OK when you have completed data entry.
To change information about the asset, click on the name and the Edit button. To remove an asset from the list, click on the name and then the Delete button.
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