Adding an Employer Matched 401(k) Using the Tax Advance Planning Function

Within the tax advance planning function, there are multiple ways you can show an employer match 401k distributions. Below are the step-by-step guideline for showing an employer match 401k distributions using the tax advance planning function.

 

Step 1: Edit: Click on the green edit button underneath the Structured Income Planning subheading.




Step 2: Add Income: Click on the green Add Income button underneath the Structured Income Planning subheading.




Step 3: Other Income Name: Filter in a name.




Step 4: First Year Income: Filter in the monetary amount.




Step 5: Inflation rate: Filter in the inflation rate.




Step 6: Tax Calculation Option: Click on the drop-down carrot arrow and select the tax calculation option.




Step 7: Add Adjustment text box: Type in 0.




Step 8: Income Adjustment table: Click on the year that the client will retire.




Step 9: Pick Years: Click on the green pick years button next to the income adjustment table.




Step 10: Income Adjustment table: The zero should move to the year that the client will retire.




Step 11: Save: Click the green save button underneath the Manage Income subheading.




Step 12: Structured Income Planning Page: The Structured Income Planning should reflect the editing changes made to the account.




Step 13: Manage: Click on the green manage button within the column for the 401k.




Step 14: Tax Calculation Option: Click on the down carrot arrow and select Tax Income Distributions (Qualified).




Step 15: Structured Income Type: Click on the radio button next to Annual Fixed Savings.




Step 16: Annual Fixed Savings Text Box: Type in the monetary amount.




Step 17: Income Data: Within the Income data table click on the Year text box that you would like to select.




Step 18: Pick Years: Click on the green Pick Years button located at the lefthand side of the Income Data table. 




Step 19: Clicking: After clicking on the Pick Years green button, the term savings should be entered in the income column and numeric amount should be entered into the Variable column of the table. Repeat step 15 to 18 as needed.




Step 20: Save: Click on the green button Save underneath the Manage Account subheading.




Step 21: Structured Income Planning Page: The Structured Income Planning should reflect the editing changes made to the account.




Step 22: Add Inc Tax: Click on the green Add Inc Tax button underneath the Structured Income Planning subheading.




Step 23: Use Advanced Tax Planning: Click on the green Advanced Tax Planning button underneath the Manage Tax subheading.




Step 24: Tax Name: Filter in Tax Name.




Step 25: Enter Additional Tax Details Not Modeled Elsewhere In This Plan: Enter the employer contributions in the “Other Schedule 1 Income” column as positive values.




Step 26: Save: Click the green save button underneath the Manage Tax Subheading.



Step 27: Structured Income Planning Page: The Structured Income Planning should reflect the editing changes made to the account.




Step 28: Display Options: Click on the green Display Options button underneath the Structured Income Planning subheading.




Step 29: View Tax Rates: Click on the green View Tax Rates button in the Column Display Options.




Step 30: Saving the Structured Income Planning Scenario: Click the green Save button underneath the Structured Income Planning subheading.




Step 31: Edit:  If you need to make an edit to the structured income plan click on the green edit button underneath the Structured Income Planning subheading.




Step 32: Cancel: If you need to go back to the previous page, click on the green Cancel button underneath the Structured Income Planning subheading.




Step 33: Logout: To sign out of SIPS, click on the Sign Out heading that is located in the upper right-hand side of the screen.

If you feel you need more support or would like to set up demo time with one of our representatives, please contact us at: +1-888-449-6917 or support@planscout.com