How can I model an HSA or Retiree Health Account (RHA) to cover Medicare premiums and other healthcare expenses in WealthTrace?

WealthTrace allows you to model Health Savings Accounts (HSAs) and Retiree Health Accounts (RHAs), including investment growth and tax-free qualified withdrawals. However, WealthTrace does not automatically withdraw funds from an HSA or RHA to cover Medicare Part B and Part D premiums, including any IRMAA adjustments. Setting Up an HSA or RHA 1. Disable Automatic Medicare Estimates Navigate to [...]

If an investment account contains both equities and municipal bonds, should the entire account be set to Tax-Free Interest?

No. If the entire account is set to Tax-Free Interest, WealthTrace will not currently treat capital gains and dividends from the taxable investments in that account as taxable. How you should enter the account depends on whether it is linked or manually added. Linked Accounts If the account is linked, set the Account Type to Taxable rather than Tax-Free Interest. Then use the setting: Is a [...]

Which account does WealthTrace use to pay the taxes generated by a Roth conversion, and can I choose which account is used?

When WealthTrace calculates taxes resulting from a Roth conversion, those taxes are treated as an expense within the plan. Currently, WealthTrace pays those taxes in the following order: Taxable investment accounts - funds are taken from taxable accounts in the same order they would normally be used to pay other expenses.The IRA being converted - if there are no taxable funds available, [...]

What happens when my Social Security or pension income is more than I need to pay for expenses?

When Social Security, pension income, or other income exceeds your expenses, WealthTrace treats the remaining amount as excess cash flow. The excess income goes into your taxable investment accounts as a cash inflow on a pro-rata basis, based on the balances of those accounts. This means you may see money flowing into a taxable account even after that account had previously been [...]

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 [...]