The reason I'm looking at this is that I plan to retire before 59.5 years old and I can access some of the investment accounts without penalties. I do know that there are IRS rules to access regular pre-tax accounts without penalties, but in my case there is no reason to go that way as I have "free" access to money in 475b after I stop working and I can use them until the 59.5 age.I have used, professionally, every major financial planning software that's out there (ok, exaggerating). But I've tried literally 10 various packages which are both designed for professionals and also non-pros.
I've never seen software that can handle what you are asking. The closest is Pralana, which is now the software I use exclusively. But even then, all you can do is set the withdrawals from your various accounts to "proportional", or alternately sent the priority to be first X, then Y, then Z. That's not what you are looking for.
But let me ask, how valuable is it to you for that functionality? Do you really want to specify some arbitrary future withdrawals where pre-tax 457b accounts account is $X in taxable income a year while the 403b account is $Y? And would that ratio/amount/priority depend on tax rates/laws which exist in the future at that time, and which you would ALSO want the software to allow you to set in advance?
The second main reason is that I want to control my taxable income level and keep it at let's say $50,000 while I'm getting the difference from savings, taxable, or Roth accounts. This is not only to control my tax brackets, but it has multiple other implications in my case.
I'm not looking to find magical software that can predict future taxes and laws, but I believe the possibility of setting up your withdrawals from different types of accounts can make a huge difference, especially in the case of "early" retirement.
Statistics: Posted by SALVARI3000 — Tue Sep 17, 2024 7:26 pm — Replies 10 — Views 256