Lifetime Planner IDEA: Fix Account Assignment for Special / College / Future Home Expenses

Scooterlam
Scooterlam SuperUser, Windows Beta Beta
Lifetime Planner IDEA:  Fix Tax Deferred Account Assignment bug for "Special and College Expenses"

and

ADD Tax Deferred Account Assignment Capability for purchase of  "Future Homes"


Allow any account to pay for any special, college or future home purchase expense.


Please Consider Voting for this IDEA.  Add your comments and thoughts as well!


THE ISSUE


Currently, LTP allows selection of an IRA / 401K / ROTH account(s) to pay for certain Special or College Expenses.  Image 1.  

However, when the user does select an IRA or 401K or ROTH account type, LTP does NOT actually use this account type to pay for the expense.  LTP reverts back to using a taxable account type to pay for the special or college expense.   Image 2.


Don't allow selection of an account type if the LTP model does not actually use it.


Confirm by:   1.  Create a large "special expense", identify plan member.  2.  Make a tax-deferred account selection in the special expense dialog 3.  Inspect the plan results table for the year of the special expense.  4.  In the Portfolio Value section, note the use of a taxable account rather than the user selected tax deferred account.


THE CHANGE


1.   Fix Retirement Account Assignment bug for Special Expenses / College Expenses.  Allow use of an IRA or other tax deferred (or tax free) account to ALSO fund these expenses either before RMD age or after.


2.  Ensure that currently modelled tax and penalties are applied, if appropriate,  when using this tax deferred account type to pay for special, college (or home expenses).  Allow for tax penalty exception for first time home buyer.   Warn the user that they have selected an account type that may incur penalties and taxes.


3.   Add a similar Retirement Account Assignment option to allow the user to select a tax deferred or tax free account to pay for a future home expense.   Currently, the only option available are taxable accounts.


4.  Ensure this user selected account setting is applied before any current or future withdrawal rule or strategy changes.


5.  Correct the Help button in "Choose Funding Accounts" dialog to the more modern Quicken "?" icon. Image 1.


6.   Document in HELP the use of account specific selections for funding of "Special, College and Home" expenses.




Please Consider Voting for this IDEA.  Add your comments and thoughts as well!




IMAGE 1  -  Selection of account type (ex. IRA) to pay for special or college expense





IMAGE 2 - Plan result table showing use of wrong account (ie account not selected by the user).



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