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December 2018 News

Planning Notes | Software | Events | Tech Tip  



Annuities - TOTAL

by David Winslow

Annuities in TOTAL are typically represented as either Tax-Deferred Assets or as Other Income.  Adding annuities to a plan is easy and even complex annuities can be modeled with TOTAL’s powerful features. 

Annuity Accumulation Phase : Tax Deferred Asset 

Assign the Tax-Deferred asset type to non-qualified deferred annuities which are still in the accumulation phase.  Tax-Deferred has its own illustration report page which shows the collective details and performance of tax-deferred assets in the scenario. 

Tax-Deferred cost basis in TOTAL is assumed to be after-tax money, so the cost basis portion of the asset won’t be taxed on withdrawal.  Taxable Accrued Interest is calculated as: Total Value - Cost Basis.  It represents the cumulative taxable interest earned over the life of the annuity.  These assets are LIFO (last-in first-out) so any withdrawals will be taken from Taxable Accrued Interest before the non-taxable cost basis portion.     

TOTAL makes the assumption that early withdrawals from tax-deferred assets are not subject to a penalty tax.  If a penalty tax is appropriate in your scenario, you can enter 10% of the early withdrawal amount in the Tax Details section under Other Federal Tax or (Credit) for the year of the withdrawal. 

Qualified plan deferred annuities in the accumulation phase should be assigned the Retirement Plan asset type.  Early withdrawals from Retirement Plan assets are subject to a penalty tax by default.  This behavior can be toggled with a checkbox located at Assumptions – Other – Retirement Plan Options.

Read the entire article here: Annuities in TOTAL


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TOTAL - Report Calculation Overhaul

The latest TOTAL updates affected some report pages. No need to worry about your plans or software. This update is very technical, but in short, it improves the generation of reports for greater accuracy and efficiency.



Silver and TOTAL - December Suite Package

All three planning levels plus client access. Money Tree is offering Silver and TOTAL for $999 (regularly $1837) through December 31st. Can't decide which is better for your business? You don't have to choose!


Tech Tip

TOTAL - Easy Money vs. Golden Years

Do you have TOTAL or trialed TOTAL, and been confused on Easy Money and Golden Years? The difference comes up a lot. TOTAL has two report module options; Easy Money (goal based) and Golden Years (cash flow). Learn more about the differences between these reports.

View recorded training classes anytime:

Silver - Desktop Edition | Online Edition

TOTAL - Desktop Edition | Online Edition | Easy Money | Golden Years

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