Taxable Account Withdrawals and Capital Gains Taxes
Why is WealthTrace using taxable account principal when income appears sufficient?
This can happen when a withdrawal from a taxable account generates capital gains taxes. WealthTrace may use additional principal from that same account to pay the taxes created by the withdrawal.
As a result, it may appear that the program is drawing from the account balance even when dividends, interest, Social Security, pensions, or other income are available elsewhere.
WealthTrace currently handles these taxes within the account generating the capital gain. This calculation may be refined in a future update.