Product Release Notes

RELEASED - January 2023

EarlyRetire Pro™ 2023

New in this release:

  1. New Life Expectancy Tables introduced by the IRS for 2023 and beyond change how RMDs (required minimum distributions) and 72(t) payments are calculated.

  2. Updates for SECURE 2.0:  RMDs from retirement plans now start at age 73, or for persons born after 1959, age 75. The penalty for failing to withdraw an RMD is reduced from 50% to 25%.

  3. Updates for the American Rescue Plan:  Extension of changes to the Affordable Care Act thresholds, subsidy rates, and temporary elimination of the subsidy "cliff" are accounted for through 2025.  Medicare Part B and D premiums, and parameters for ACA tax credit eligibility and amounts are updated for 2023.

  4. Account for Capital Gains in your Taxable Assets:  This added tax precision can affect how the program optimizes your withdrawal strategy. EarlyRetire normally treats Taxable Assets as funds that can be withdrawn without a tax liability, but which produce taxable interest income each year they remain invested. But you could have some of these assets invested in growth stocks that don't produce taxable income while invested, but do get taxed (as capital gains) when they are liquidated. When they are taxed as capital gains, a different set of tax brackets and rates apply than for ordinary income. If you have a mix of interest/dividend producing investments and growth stocks in your Taxable Asset category, you can now specify the percentage of your Taxable Assets to be treated as growth securities and taxed as capital gains, with the remaining percentage treated as interest-earning.

  5. Apply Federal Estate Tax to Leftover Assets at Death:  A new optimization setting reduces Leftover Assets at Death by the applicable Federal Estate Tax, and this tax-adjusted value can be used on the Planner to recalculate other variables. The final Report Detail shows the best way to pay the Estate Tax from the three asset categories.

  6. New "Proportional" Tax Leveling method takes distributions proportionally from the three asset categories each year. This is a simple method being increasingly offered by retirement account administrators. There are also improvements to the other tax leveling methods in this release.

  7. Plain Text Report:  You can now save the Plan Report to a plain text file for easier exporting or customization.

  8. Note Field from the Client Detail can be now optionally displayed and edited on the Planner.

  9. Expansion of Tax-Deductible Financial Events:  More flexibility for making Financial Events tax-deductible allows for a wider variety of deductible contributions or expenditures.

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