Iterative tax calculations.. time frame??

@cedyathome This has proven to be a very problematic thing to accomplish given all the complexities of Pralana Online. We've been working on this for quite a while now and it's mostly working, but it still needs more test time. Hopefully, it will be included in a release within the next month.

Stuart

Thanks for the update, Stuart. Good luck.

Any update on this?

I haven't done anything with the program since early in the year, so if it has already been implemented - thank you.

@cedyathome It's still a work in progress. Due to the complexity of Pralana Online, this has proven to be a tough nut to crack.

Stuart

I've enjoyed using PRC online since it was introduced. I look forward to using it in more detail once this problem has been solved. Do you have a revised timeline or even if it's feasible?

@turk182 Thank you for your interest in this. I think it is feasible, though this assumes that I am smart enough to do it.

Good news: it requires iterative tax calculations to find the estimated tax payment to be included in expenses in the current year. This is done and works well.....

Bad news: .....unless you have Roth Conversions enabled which also require iterative tax calculations (yes, all the tax forms get recalculated multiple times) to find the Roth Conv. amount that takes you to the top of your target bracket.

So far, I have not gotten the dual/nested iterations to work properly. I have instead spent most of this year on many other enhancements and requests including the new Dashboard and upcoming sankey charts that some have requested.

Sadly, Federal and state taxes are not a linear function of ordinary income or this would be trivially easy.

I did some testing on scenarios with Roth conversions disabled. Same-year vs next-year taxation of unscheduled withdrawals did not change the final savings very much....as I recall maybe 2 - 3% on average. It matters more if: a) you have sizable cash shortages in multiple years and b) the unscheduled withdrawals are from an IRA or from the taxable account and you have sizable unrealized LTCG and your LTCG harvesting strategy is first.

@cstone Hello Charlie, Is it possible, if only as a distortion reduction/stop-gap, to have an entry for "Prior Year Unscheduled Withdrawals" similar to Pralana Gold. My wife and I find ourselves with Traditional IRA and Roth IRA assets only. We live off the Traditional IRAs, doing Roth Conversions, and paying the taxes from the Traditional IRA (I know about iterative tax calc). I think you know what that first plan year looks like in my situation, 100% and only Roth Conversions up to my targeted tax bracket. Is this doable? Thanks

@cstone

Thanks for the update. Unfortunately, I'm in the "matters more" camp with our circumstances. I still use and appreciate the program for the long term. Keep up the good work. I look forward to the time when this gets figured out and implemented.