Mysterious Taxable Portfolio

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RDBeck
Posts: 2
Joined: Sat Sep 21, 2013 11:22 am

Mysterious Taxable Portfolio

Post by RDBeck »

I've entered my data with only tax-deferred savings and tax-deferred contributions. The taxable and tax-free accounts are set at zero initial values with zero contributions. When I run the simulation, I get a significant entry into a taxable savings account and it grows significantly. Clearly with this issue, the tool isn't very valuable at the moment.

I'm running the version which was identified for Linux using Debian 7.1 and IcedTea for the Java processor.

RDBeck
Posts: 2
Joined: Sat Sep 21, 2013 11:22 am

Re: Mysterious Taxable Portfolio

Post by RDBeck »

Not sure what was going on, but I recreated the file from new and this mysterious taxable portfolio disappeared. A taxable portfolio reasonably appeared at the point of mandatory IRA withdrawals (age 70).

jimr
Posts: 596
Joined: Thu Feb 28, 2008 6:48 pm

Re: Mysterious Taxable Portfolio

Post by jimr »

There's an option in settings that determines whether Required Minimum Distributions are taken out of tax deferred accounts.

If the Take RMDs option is enabled, each year starting at age 70 the required minimum distribution is withdrawn from the tax deferred portfolio and used to fund spending for the year. Any part of the RMD that's left over is added back into your taxable portfolio.

Hopefully that explains what you were seeing. If not, don't hesitate to post more questions.

Jim

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