Why is NIIT showing a value greater than zero when I’m below the income threshold?

The Net Investment Income Tax (NIIT) income thresholds are not indexed to inflation, similar to the income thresholds used for https://support.mywealthtrace.com/21145/kb/article/140244/why-does-wealthtrace-show-more-of-my-social-security-income-becoming-taxable-in-future-years-even-when-my-income-is-shown-in-todays-dollars" target="_blank taxing Social Security benefits. If your WealthTrace [...]

Why does IRMAA change after my filing status changes?

Medicare IRMAA is based on both Modified Adjusted Gross Income (MAGI) and tax filing status. The income thresholds for a single filer are lower than the thresholds for Married Filing Jointly. As a result, a surviving spouse may be subject to IRMAA at a lower household income after changing to Single filing status. IRMAA also generally uses income from two years prior to determine the current [...]

Why does my Social Security become more taxable over time?

The federal income thresholds used to determine how much of Social Security is taxable are not indexed for inflation. The thresholds have remained fixed while other income amounts generally increase over time. As a result, a larger portion of Social Security benefits can become taxable in future years, even when the inflation-adjusted values appear similar to today’s income levels. Up to 85% of [...]

Can I withdraw from multiple investment accounts at the same time?

WealthTrace uses investment accounts in the established withdrawal order to cover expenses. It does not automatically blend withdrawals across multiple investment accounts for a single expense. How to Model Blended Withdrawals If you want to model withdrawals from multiple accounts in the same year, create separate [...]

Why does my Monte Carlo simulation show a 0% success probability when I still have money in my retirement accounts?

WealthTrace can show a 0% Monte Carlo success probability when your taxable funds run out before you can access your qualified, tax-deferred retirement accounts. For example, if you retire before age 59½ and your taxable accounts are depleted, WealthTrace considers your plan unsuccessful even if you have significant funds remaining in your IRA or 401(k). A 0% success probability does not mean [...]