I am self employed and am trying to model the tax and total capital value differences between traditional and Roth contributions and also to see the long term implications of simply investing funds outside of my 401K since I'm within a few years of retirement.
In the "income" portion of Pralana Gold, when I check the box for self-employed and make an employer contribution to my 401K, it doesn't reduce my taxable income as would be expected (the employer contribution reduces the pass through income from my LLC).
Is the right way to do this to simply show it all as a personal contribution? This seems to have the right impact on the taxable income and I did see that the spreadsheet doesn't limit the amount you can put in this field.
Also, wondering if the Net Worth calculation accounts after tax value of a traditional 401K versus a Roth 401K or IRA. Does Net Worth treat all account values the same or are they tax adjusted?
@bassettdg Right, PRC doesn't reduce your taxable income in this case because it assumes your self-employment income is net income since it doesn't attempt to model your business. So, as you've suggested, the right way to do this is just make all contributions "personal contributions.
You can choose to have net worth shown in terms of either absolute dollars or "effective" dollars where the dollars held in tax-deferred accounts are derated based on the effective tax rate that you specify on the Financial Assets > Management page. On the Tabular Projections > View Mgmt page, you can select which data to include in each of your Views so this gives you the mechanism to select which version of net worth you want to include.
Stuart
