Does the Account Withdrawl Priority Optimizer seek to minimize taxes, one year at a time?
Or does it take a long-term macro view and attempt to account for items like the marginal rate of future taxes on tax deferred accounts?
I realize that this last example may be beyond a desktop program’s capabilities, given the computations and normative choices involved.
Thank you for your assistance.
@gopal It takes the macro view, seeking to find the optimum withdrawal priority for each of the time periods you've specified on the Financial Assets > Management > Withdrawal Priorities page. It uses the same withdrawal priority for each year in a given period and then selects the settings that result in the highest final effective savings balances. This not only takes into account future taxes, but everything else as well.
Stuart
