taxes
Posted: Wed Mar 10, 2010 7:55 pm
Does the simulator automatically take out taxes or do I need to infate my expenses by the amount of my taxes.
Jim
Jim
Jim,
The planner accepts input values for "income tax rate" and "investment tax rate." The income tax rate is used to compute taxes due on withdrawals from retirement accounts and the investment tax rate is used to compute taxes due on investment gains.
With these two input parameters, the planner can roughly simulate the impact of taxes on your retirement plan, but it's obviously not precise. The planner doesn't handle graduated tax rates and it doesn't distinguish between different types of investment income.
Hope that helps,
Jim