I am trying to figure out how to add a taxable account withdrawal that I used to payoff a car loan. I also would like to do the same to cover the taxes on a manually entered Roth conversion. I searched the forum and Google and noticed similar questions. Someone mentioned that it was being addressed early this year. It would be helpful in optimizing your withdrawal/conversion plans if you could choose which account the money comes from and not just the pretax accounts. That way you could see the results of one strategy vs the other.
@redvudu The ability to make scheduled withdrawals from the taxable account is still not implemented. In the meantime, though, setting your withdrawal priority with the taxable account at the top can generally accomplish the same result. In this case, paying off the car loan and paying the taxes on the Roth conversion are lumped in with all your other expenses, and any resulting negative cash flows are handled via unscheduled withdrawals from the cash account and whatever account sits at the top of the prioritized list on the Build > FA > Management > Withdrawal Priority page.
Stuart
I am currently retired. If I change the withdrawal order wont it also change my withdrawal source for reoccurring expenses to taxable instead of my IRA. Would it work if I setup all my IRA reoccurring withdrawals manually and only let it do the rollover taxes and one time expenses per the new withdrawal order. This seems like it might work for the current year but would it work for using the Roth conversion tool? Wouldn't if just spend down the taxable accounts in the first couple of years to cover expenses instead of only using the money to pay the taxes on Roth conversions?
@redvudu It will do the scheduled withdrawals first, putting those into your cash account. Then, it will deal with your current expenses and if there isn't enough money in the cash account to cover them, it will go to taxable account to get the rest (assuming it's at the top of the withdrawal priority list). So, I think your proposed approach will work. I spoke with Charlie about this yesterday and he plans to implement the scheduled withdrawals from the taxable account very soon now.
Stuart
Thank you, to simplify things, I will hold off in trying my workaround since the change is happening soon. I already have this years conversion and next years projected taxes calculated on a spreadsheet. I was just looking for a way to account for it when doing longer term projections. I appreciate the quick response to my question.
