Non-qualified assets will default to 0% interest, dividends, and capital gains. In this scenario, no tax is due on the non-qualified accounts until withdrawals are made.
You now have the option to specify how much of the beginning balance each year is paid in interest, dividends, and capital gains.
By entering 2% capital gains on an asset, RetireUp will calculate the capital gains on that account.
Go to the plan tab>all years>cash flow>hover your cursor over the blue tax amount for more details. This feature is only available when using the progressive tax feature.
Clicking on the blue tax amount will show more details.
Clicking on the blue tax amount of capital gains will breakdown the taxation even further.
Adding these capital gains of 2%, even with delayed withdrawls until 2038, will show that the non-qualified account paid $750 (2% capital gains times $250,000 beginning balance times a capital gains rate of 15%) in capital gains in 2023 which the client would pay taxes on. The money was not withdrawn from the account, but taxes were paid on that gain, so the $750 would be added to the cost basis of the account.