Product Release Notes
RELEASED - January 2023
EarlyRetire Pro™ 2023
New in this release:
- New Life Expectancy Tables introduced by the IRS for 2023 and beyond
change how RMDs (required minimum
distributions) and 72(t) payments are calculated.
- 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%.
- 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.
- 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EarlyRetire normally treats Taxable Assets as funds that can be withdrawn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.
- 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.
- 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
- Plain Text Report: You can now save the Plan Report
to a plain text file for easier exporting or customization.
- Note Field from the Client Detail can be now optionally displayed and
edited on the Planner.
- Expansion of Tax-Deductible Financial Events: More flexibility for
making Financial Events tax-deductible allows
for a wider variety of deductible contributions or expenditures.