Reversal of taxable and tax free fields??

[masutton8835]

This is a great tool but I think there's a big error in your coding. It looks like the software is taxing withdrawals on the "tax free portfolio" amount and doesn't tax withdrawals on the "taxable portfolio" amount, exactly the opposite of what it ought to do. This seems to be the case in the web-based and standalone program.

[jimr]

Anything is possible, but that part of the code has been pretty heavily vetted over the years by hundreds of thousands of users.

For the taxable portfolio, investment taxes are automatically deducted from each year's growth behind the scenes. The simulation assumes that the taxable portfolio has a cost basis equal to its value. In other words, no taxes will be due on withdrawals from the taxable portfolio because the investment taxes are paid on gains in the year that they occur.

The tax free portfolio shouldn't show any taxes getting deducted. What's giving you the impression that taxes are being deducted from the tax free portfolio?

Finally, the tax deferred portfolio is carried at a cost basis of 0%. So any withdrawals from the tax deferred portfolio get taxed at the Income Tax Rate shown on the main page.

Hope that helps.

Jim

[masutton8835]

Ga! Nevermind I figured it out.