Roth Conversion OptimizationRoth Conversion Optimization helps you decide how much to convert from pre-tax retirement accounts (like a Traditional IRA or 401(k)) into a Roth account, and when to do it. Converting can be powerful because it turns pre-tax savings into tax-free growth, but it also creates taxable income in the year(s) you convert—so the “best” plan is usually about balancing taxes [...]
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168 ArticlesI have a financial advisor that charges a percentage fee. I also want to add fees for fund expenses. How do I do this?
You can add investment fees from the Plan Settings section.To apply fees to every investment account:Click Plan Settings on the navigation menu. Select the Investment Fees tab.Enter the applicable investment fees in the fields shown in the first screenshot below.Your changes will automatically save.For example, entering fees that total 1.25% annually will apply a 1.25% annual fee to every [...]
Can I enter Qualified Charitable Distributions and will they be accounted for properly?
Yes, you can enter these and the program will accurately handle the fact that they will not be taxed. QCDs are first taken out of Required Minimum Distributions (RMDs) and then, if necessary, out of Qualified Tax-Deferred account balances. The amount deducted is not taxed. Look at the screenshot below to see how to enter [...]
When I run Roth conversion scenarios, which account do the converted funds go into?
If you have a Roth account already, it will move the funds into that account. If you have more than one Roth account, it will use the first one in the list. If you have no Roth accounts, the program creates one behind the scenes with a $0 balance. Also note that the Annual Return used for the Roth account in this scenario of the account being converted. This allows the program to compare apples to [...]
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 [...]
I find that I have to re-enter my login credentials frequently for one of the brokers I linked. Why is that?
WealthTrace does not determine how often you must re-enter your login credentials for linked accounts. The broker or bank determines this. However, many have the ability to change how often they ask for this. You would need to contact your broker or bank and ask if there is a way to change the [...]
Can I cancel my account?
Yes. Please email with your username, and we can turn off auto-renewal for your account.Your subscription will remain active through the end of the current billing period and will not renew after that [...]
I want to withdraw from my IRA before one of my accounts that is in the Taxable & Tax-Advantaged section. How do I do this?
There are two ways to control this. You can set an age when funds can be used from an account in the Taxable & Tax-Advantaged section, thereby "locking it out" for a set time period as you can see in the screenshot below. The last screenshot below shows you how to only use an account once all other accounts are depleted. You can also tell the program to only use the account after all other [...]
How can I prioritize tax-deferred accounts for expenses and taxes?
You can to specific accounts, which overrides the standard withdrawal order for those expenses. Use the setting to prioritize qualified tax-deferred accounts for other withdrawals. You can lock taxable or Roth accounts until a specific age or set them to be used last. This directs WealthTrace to use available tax-deferred accounts [...]
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 You can review [...]