Want to be sure I’m not missing something on how to model this situation. As a retiree, pre-SS, I want to model having my taxable portfolio generating about $25K in mostly qualified dividends each year. This amount does not automatically appear to show up on any Tabular Projections tab and the AGI shows up too low as $8K. I’ve played with the Financial Assets Management, but that really is about withdrawals and not dividends/distributions. Should I just put this into the “Other Income Stream” and set the Taxation to “Capital Gains”? This is important for me for Roth conversions and eventually Medicare. I'm concerned that putting into Other Income Stream is theoretically already included in the Financial Assets return as a reinvested dividend, so it could be doubling up.
Greg,
The intended way to model this is as part of the growth of the regular investment account. As a refresher, this is done by specifying your asset classes on the Financial Assets > Asset Classes page, your asset allocation on the Financial Assets > Asset Allocation page, and (this is the key to your question) the way the account growth is to treated with respect to income taxes on the Financial Assets > Asset Class Taxation page. On the "Taxation" page, you can specify what portion of the account growth is taxed as qualified dividends (i.e., Growth Taxed Annually as LTCG).
So, your specification of asset classes and asset allocation will determine the OVERALL growth of the regular investment account. Then, via the FA > Taxation page you have the ability to specify what portion of the overall growth is associated with qualified dividends. All growth will still be reinvested in the regular investment account, but your taxes will be calculated correctly. If you actually intend to spend those dividends each year, you'll probably need to set the Withdrawal Priority with the regular investment account in the first position.
Note: If you should elect to model qualified dividend income on the Income page you need to make very sure that you reduce the growth of the regular investment account accordingly.
