Does the program calculate my state income tax rate for me?

By default the program will calculate your state income tax rate based on your state's up-to-date tax laws. You can also enter your own state income tax rates.There is an option to tell the program that you will move in the future to a new state as well. [...]

I see shortfalls when I am 55, just after I retire. But I have plenty of money in my investment accounts. Why are there shortfalls?

Shortfalls very early on usually occur because you don't have access to your traditional IRAs or 401(k) plan before age 59.5. The program defaults to not allowing withdrawals from qualified retirement accounts before this age. However, you can https://support.mywealthtrace.com/21145/kb/article/111405/early-withdrawal-from-ira-or-401k" target="_blank change this. If you don't have enough [...]

Where do I enter my annual, recurring living expenses in retirement?

Enter this in the 'Annual Living Expenses in Retirement' input box as seen below. This entry is for annual, recurring expenses once retired. For expenses that will occur before retirement or will not happen every year, enter these in the https://support.mywealthtrace.com/21145/kb/article/107333/where-to-add-expenses-that-only-last-a-few-years" target="_blank Goals & Additional Expenses section. [...]

Are my Medicare premiums deduction from my Social Security payment automatically in the program?

WealthTrace does not deduct Medicare premiums from the Social Security payment. When entering your Social Security payment, you want to use the total payment. Do not deduct Medicare premiums. The program has an option to https://support.mywealthtrace.com/21145/kb/article/110695/medicare-premiums-and-cost-of-health-care-once-on-medicare" target="_blank calculate Medicare premiums for you as a [...]

I noticed that the income used for the IRMAA calculation is way higher and lower in some years compared to other income. Why is that?

The income used for https://support.mywealthtrace.com/21145/kb/article/110695/medicare-premiums-and-cost-of-health-care-once-on-medicare" target="_blank IRMAAis the modified adjusted gross income (MAGI) from two years prior if the program has the two year prior number for this. In other words, if today's year is 2024 then the two year lagged MAGI for IRMAA will be used starting in 2026 and [...]