qwerty3656
Full time employment: Posting here.
- Joined
- Nov 17, 2020
- Messages
- 762
Do any of these calculators take ACA into account?
Opposite Conventional Wisdom Strategy
- Thread starter Safe Harbour
- Start date
schenbew
Recycles dryer sheets
Pralana Gold 2021 does. Here's a screen shot of the Healthcare planning tab for an idea of how it approaches the subject:
Attachments
Safe Harbour
Recycles dryer sheets
I don't see it in the assumptions of Income Strategy. I do see SS and CG thresholds, Medicare surcharge, standard deductions, old age exemption, and it's doing state specific taxes too.
Safe Harbour
Recycles dryer sheets
Hey Schenbew, Remind me what costs for Pralana Gold are please?
schenbew
Recycles dryer sheets
Safe Harbour,
Costs $99. If you buy now, you get a free upgrade to the 2022 version when it's released in Jan 2022. Note that you must have Excel to run it...it's not a standalone program.
Link here if you'd like to read more about it:
https://pralanaretirementcalculator.com/
Costs $99. If you buy now, you get a free upgrade to the 2022 version when it's released in Jan 2022. Note that you must have Excel to run it...it's not a standalone program.
Link here if you'd like to read more about it:
https://pralanaretirementcalculator.com/
Although most of the PROPOSED changes affect high income folks; as pointed out in a previous post, one point was that ALL backdoor Roth conversions were proposed to cease in 2022.
I would not be surprised if this date was pushed out to 2023 or even later, but at any rate, you might want to look into being proactive, just in case.
This was what our CFP firm sent last week:
"On September 14, the House Ways & Means Committee released its American Families Plan proposal. It also aims to increase tax revenues through tax rate increases and rule changes, though it doesn’t mirror every tactic in Biden’s proposal.
We have received many inquiries about the Plan’s potential impact. We have also noticed misinformation about what it entails.
The most important point is that these are proposals, not yet laws. And the legislation will continue to evolve before Congress votes on it, if it ever does.
Nonetheless, it’s not premature to consider the potential implications and whether any action is warranted now."
I would not be surprised if this date was pushed out to 2023 or even later, but at any rate, you might want to look into being proactive, just in case.
This was what our CFP firm sent last week:
"On September 14, the House Ways & Means Committee released its American Families Plan proposal. It also aims to increase tax revenues through tax rate increases and rule changes, though it doesn’t mirror every tactic in Biden’s proposal.
We have received many inquiries about the Plan’s potential impact. We have also noticed misinformation about what it entails.
The most important point is that these are proposals, not yet laws. And the legislation will continue to evolve before Congress votes on it, if it ever does.
Nonetheless, it’s not premature to consider the potential implications and whether any action is warranted now."
Safe Harbour
Recycles dryer sheets
Phone Session with Income Strategy
I had my (first?) phone consult with Income Strategy ($120/45 min). I spoke with Chris. He is one of three or four advisors they have. He was very knowledgable about the software and helped my go through the setup parameters. He showed me how to do a couple of things that I hadn't figured out. He suggested running a couple more strategies and then confirmed to me that the one the software was sitting out as the best is what he would expect in my situation. We discussed some of the reasons for this and he confirmed my thoughts that it is due to:
1. Moving IRA money out now before I'm forced into a higher tax bracket by RMDs.
2. Step up basis on inherited mutual funds which are 80% capital gains in my Taxable Account on my death.
And then he had one I had not thought enough about before and that is we have 5 years until the 2018 Tax cuts expire in 2025 and I should take advantage of that. No one knows where taxes will go or even if things like the step accounting of basis at death will continue. So it's good to try and take advantage when I can.
It's nice that everything aligns right now: current tax rates till 2025 (maybe). RMDs don't start for me till 2026. I can move more money from the IRA for a few years till I turn 70 and start to take SS.
All in all I think I have a good plan and the materials that I need to talk with my Tax Advisor about it from a knowledgable position. I'm pretty happy with how it worked out and am looking go ahead and execute; turning from a Conventional Withdrawal Strategy (Taxable -> Tax Deferred -> Tax Free) to a Strategy of converting IRA money at the top of the 24% bracket for 5 years. Then withdrawing my RMD and money from the fixed income portion of the Taxable Account. I will put my highly appreciate Mutual Funds in the Taxable Account and My ROTH away for my Heirs.
All in all that gives me about a 12% boost in the lifetime value of my investments. I find it amazing but I understand it now.
I had my (first?) phone consult with Income Strategy ($120/45 min). I spoke with Chris. He is one of three or four advisors they have. He was very knowledgable about the software and helped my go through the setup parameters. He showed me how to do a couple of things that I hadn't figured out. He suggested running a couple more strategies and then confirmed to me that the one the software was sitting out as the best is what he would expect in my situation. We discussed some of the reasons for this and he confirmed my thoughts that it is due to:
1. Moving IRA money out now before I'm forced into a higher tax bracket by RMDs.
2. Step up basis on inherited mutual funds which are 80% capital gains in my Taxable Account on my death.
And then he had one I had not thought enough about before and that is we have 5 years until the 2018 Tax cuts expire in 2025 and I should take advantage of that. No one knows where taxes will go or even if things like the step accounting of basis at death will continue. So it's good to try and take advantage when I can.
It's nice that everything aligns right now: current tax rates till 2025 (maybe). RMDs don't start for me till 2026. I can move more money from the IRA for a few years till I turn 70 and start to take SS.
All in all I think I have a good plan and the materials that I need to talk with my Tax Advisor about it from a knowledgable position. I'm pretty happy with how it worked out and am looking go ahead and execute; turning from a Conventional Withdrawal Strategy (Taxable -> Tax Deferred -> Tax Free) to a Strategy of converting IRA money at the top of the 24% bracket for 5 years. Then withdrawing my RMD and money from the fixed income portion of the Taxable Account. I will put my highly appreciate Mutual Funds in the Taxable Account and My ROTH away for my Heirs.
All in all that gives me about a 12% boost in the lifetime value of my investments. I find it amazing but I understand it now.
