Lifetime Planner IDEA: Improve how ROTH IRAs are Displayed and Modelled in LTP

This is an idea post stemming from recent posts regarding ROTH IRA handling in LTP.  Reference links below.  In the first link, I conclude that ROTH IRAs are reasonably modelled in LTP.  But, it could be much better....especially in terms of transparency in the Plan Result Tables and Graph.  



1.  In the Plan Summary Tables, break-out ROTH IRA related Income, Expenses and Portfolio Values.  ROTH IRA accounts (tax-free) are currently included under the tax-deferred account type.  Very confusing and wrong.  See image 1.  Expand this transparency to Plan Result Graph and any other current or future LTP reports.


2.  Proactively UPDATE ROTH IRA contribution limits as they change!  Implement both normal and catchup contributions in LTP.   As of this posting date,  contribution limits in LTP are $ 5500.  Current law permits  $6000 per year ($7000 per year catchup contribution for those over 50).  See Link.   Lack of contribution limit maintenance has been an issue for all contribution limited account types...Yes, there are workarounds, but "broken windows" need to be fixed, then the modelling rules, already built in LTP, maintained going forward...timely.


3.  Implement an early withdrawal penalty and tax of earnings (<59.5).


4.  Building on # 3, expand the ROTH IRA withdrawal rules or "exception flows" in the LTP model.   Image 2.  Data for this is available from LTP user data, AGE of user is explicit and AGE of Account can be derived from the register data:  (date of first ROTH withdrawal - first deposit date).



1.  Reduce modelling error and confusion when Lifetime Planner includes ROTH IRA accounts.   

2.  Provides a step-wise approach to other LTP related improvements such as Order of Withdrawal and ROTH Conversion modelling et al.

3.  Improves the competitive position of Quicken LTP feature to other planning tools.








Image 1 - Breakout Tax-Free from Tax-Deferred





Image 2 - ROTH IRA Withdrawal Rules: