Assumptions - Other

This section is used to change general assumptions that do not clearly land in any of the other more specific Assumptions tabs.

Retirement Plan Options

In this part of Other Assumptions, some changes can be made to the behavior of retirement plans in the projections.

Defer RMD Start Age Past 72 Until Age: Use these fields to defer when Required Minimum Distributions begin for each individual. This only affects employer sponsored retirement plans and not IRAs. The purpose of this field is to defer RMDs for individuals working past age 72 and do not need to withdraw from their employer sponsored accounts until they are officially retired.

Calculate Penalty Tax on Pre 59.5 Plan Distributions: Check this box to have Moneytree Plan calculate the 10% penalty taxes for early distributions from traditional and Roth retirement accounts, and the 20% penalty taxes for early distributions from HSAs. It can be useful have this box checked for advisors who assume any distribution made pre-retirement falls within the qualifying expenses to avoid penalty taxes.

Include Retirement Plan in Asset Allocation Mix, Asset Pyramid, and Liquidity Reports: Check this box to include Retirement plans in the mentioned reports. A common reason to leave this box unchecked is when clients have their funds in 401ks with limited options to reinvest. Having the box unchecked ensures they are not included in reports that provide recommendations to balance assets when their options to balance retirement accounts is limited.