Expenses Paid From a Depleted Investment Account
Why does WealthTrace show expenses being paid from a taxable account after the account balance appears to reach $0?
If an investment account appears to be depleted but WealthTrace continues showing expenses or taxes being paid from it in later years, the account is likely receiving additional funds.
This can happen if:
- Rebalancing is turned on. WealthTrace can move funds back into the account as part of the rebalancing process. You can turn this setting on or off under Plan Settings > Other. You can read more about this in our Rebalance Setting article.
- The account is receiving cash inflows. Pension income, RMDs, or other cash flows can add funds back into the account.
To troubleshoot, try turning rebalancing off and review your Cash Flow Projections to see whether additional funds are flowing into the account.