Flexible Retirement Planner Support Forum

My Federal Income Tax Rate is 24% and my California Income Tax Rate is 9.3%. So I have my tax rate listed as 33.3% to accommodate both.

I am trying to resolve the issue of California not taxing Social Security.

My solution to this is: 85% of my Social Security is taxable. I added back in Miscellaneous Income the amount of money that really wouldn't be taxed.

For example: SS annual benefit $44,496, at 85% $37,821.60 is taxable, at my California income tax rate of 9.3% I added back in $3,517.40 as Miscellaneous Income with Cola Tracking Inflation.

When I hit run I get a 95% Probability of Success, without this adjustment I get an 83% Probability of Success (due to SS being taxed in California).

Looking for opinions to determine if this tweak is realistic.

Thanks.

That sounds about right, but the devil's in the details of course. Based on nothing really, I'm a bit surprised by the difference in your probability success between the two approaches. I wouldn't have expected that much impact, although it's entirely dependent on what else is going on in the plan.

Thanks for your input...much appreciation.