Lifetime Planner utilisation of taxable vs. tax free income after retirement/ 59 1/2

Lifetime Planner appears to treat tax free the same as tax differed income to cover negative cash flow requirements after retirement. 

Is their anyway to control the use of asset types after the age of 59 1/2 (Taxable - Earned income, long and short term capital gains, interest, Social Security, Pension, distribution from an Regular IRA or 401K...)  vs (Tax Free income - HSA, Roth IRA, interest from Government Bonds,...) 

Comments

  • mshigginsmshiggins SuperUser ✭✭✭✭✭
    edited September 2018
    I'm assuming you are using QWin. What year version, patch level and country version of Quicken are you using?
    Quicken user since Q1999. Currently using QW2017.
    Questions? Check out the  Quicken Windows FAQ list
  • fanfarefanfare Member
    edited January 11
    Quicken does not treat them the same.
    But, Quicken takes too much from tax-deferred accounts, resulting in early depletion of your tax -deferred funds.

    It has been posted here that an update to fix this is coming soon for the latest Quicken version. You'll have to be patient.
  • fanfarefanfare Member
    edited September 2018
    oops I missed that you are comparing tax-free against tax-deferred.

    my comment was about taxable retirement funds, versus tax-deferred retirement funds.
  • markus1957markus1957 SuperUser ✭✭✭✭✭
    edited September 2018
    fanfare said:

    Quicken does not treat them the same.
    But, Quicken takes too much from tax-deferred accounts, resulting in early depletion of your tax -deferred funds.

    It has been posted here that an update to fix this is coming soon for the latest Quicken version. You'll have to be patient.

    QW18 R12.15 is out. The RMD table from the IRS has been incorporated.
  • Mark AloisioMark Aloisio Member
    edited September 2018
    mshiggins said:

    I'm assuming you are using QWin. What year version, patch level and country version of Quicken are you using?

    I am using Quicken Premier 2017 version R17.4
  • markus1957markus1957 SuperUser ✭✭✭✭✭
    edited January 11
    You are going to have to show a specific example to demonstrate your point. For starters, Quicken makes withdrawals from the asset buckets without regard for the amount of income generated from each bucket as best I can tell, excepting taxes from projected gains in taxable accounts are taken from the taxable asset bucket. It's been my observation and the Help files specify, that taxable assets are tapped before tax-deferred assets in the case where the RMD amount and Income generated do not cover expenses.

    You make an interesting point about Roth's though. I don't have one so I can't comment with any knowledge about how Roths are handled in the LTP. It's not clear from the Help files in Quicken how Lifetime Planner uses Roth assets in the withdrawal hierarchy.  Maybe someone with a Roth can help out.
  • Mark AloisioMark Aloisio Member
    edited September 2018
    fanfare said:

    Quicken does not treat them the same.
    But, Quicken takes too much from tax-deferred accounts, resulting in early depletion of your tax -deferred funds.

    It has been posted here that an update to fix this is coming soon for the latest Quicken version. You'll have to be patient.

    Required Minimum Distribution (RMD) only addresses taxable distribution from an IRA . 

    What I am trying to do is have the Lifetime Planner simulate how I am most likely to utilize assets to cover my current and future cash flow requirements. Both my wife and I are over 59 1/2 so we can withdraw from our IRAs and 401K without tax penalties. However, the tax differed one (401ks and Traditional IRAs) go directly to our income.  I am going to be 65 next year and will be managing my income to avoid hitting the income levels that increase my costs for Medicare and other services that are income dependent. 

    I believe that currently the Lifetime Planner does not provide me with the ability to develop and test out the best strategy for managing my income to not trigger higher cost for Medicare as well as reduce taxes (Short and longer term)  
  • markus1957markus1957 SuperUser ✭✭✭✭✭
    edited September 2018
    fanfare said:

    Quicken does not treat them the same.
    But, Quicken takes too much from tax-deferred accounts, resulting in early depletion of your tax -deferred funds.

    It has been posted here that an update to fix this is coming soon for the latest Quicken version. You'll have to be patient.

    On a short-term year to year basis, Tax Planner would be the better tool to use for managing your income and its associated tax burden. You can use scheduled reminders to project income producing withdrawals and then make adjustments as the year progresses.

    Adding- at the income levels that would raise your Medicare premium, this exercise is one more akin to a hobby than a necessity. You might consider adding a municipal bond fund to the bond portion of your taxable portfolio as a MAGI reducing strategy. Tax Planner is the better tool for managing income and taxes.

    Adding- You might also want to review this thread where user Scott did some testing to sort out some of the questions you are raising.   https://getsatisfaction.com/quickencommunity/topics/lifetime-planner-bug-and-idea-list-make-yourself...
  • QPWQPW Member ✭✭✭✭
    edited October 2018
    For a person that wants a detailed forecast I suggest this program, which will be harder to setup, but you will have much more control over what it does:
    http://forecaster4website.azurewebsites.net/default.html
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