 |
Sample Pension
Asset Transfer Worksheet
Grow
your retirement plan tax free!
<% if request("process") = "Process" then
' calculate
Roth_Withdrawl = Request("amountConvert")*.8*(Request("taxBracket")/100)
Annual_Tax = Request("amountConvert")*(Request("taxBracket")/100)*0.05
Sum_Annual_Tax = Request("amountConvert")*(Request("taxBracket")/100)*0.05*30
Tax_Reduced = Request("amountConvert")*(Request("taxBracket")/100)
Ten_Percent = Request("amountConvert")*.10
Twenty_Percent = Request("amountConvert")*.20
Sum_Tax_Due_Tenp = Request("amountConvert")*(.10)*(Request("taxBracket")/100)*62
Tax_Due_Twep = Request("amountConvert")*(.20)*(Request("taxBracket")/100)
Sum_Tax_Due_Twep = Request("amountConvert")*(.20)*(Request("taxBracket")/100)*51
Net_After1 = Request("amountConvert")*.10-Request("amountConvert")*(.10)*(Request("taxBracket")/100)
Net_After3 = Request("amountConvert")*.20-Request("amountConvert")*(.20)*(Request("taxBracket")/100)
Net_After4 = Request("amountConvert")*.20-Request("amountConvert")*(Request("taxBracket")/100)*0.05
Net_After2 = Request("amountConvert")*.10-Request("amountConvert")*(Request("taxBracket")/100)*0.05
%>
| Compare
IRA growth vs PAT growth |
| Assume MRDs are reinvested
and continue to earn 6% tax deferred. The MRDs generate taxes that
must be paid. |
|
Assume you allocate your
plan $s into the PAT program. No MRDs are required, but another
tax will be generated. |
| Growth
in retirement plan |
| Year |
Beginning balance |
Taxdeferred Growth @ 6% |
Sum of taxes on MRDs |
| 1 |
<%= FormatCurrency(Request("amountConvert"),0) %> |
<%= FormatCurrency(Request("amountConvert")*1.06,0) %> |
><%= FormatCurrency(Request("amountConvert")*.5*.4,0) %> |
| 2 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^2,0) %> |
|
| 3 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^3,0) %> |
|
| 4 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^4,0) %> |
|
| 5 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^5,0) %> |
|
| 10 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^10,0)
%> |
|
| 15 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^15,0) %> |
|
| 20 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^20,0) %> |
|
| 25 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^25,0) %> |
|
| 30 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^30,0) %> |
|
|
 |
| Growth
in PAT plan |
| Year |
Beginning balance |
Tax free Growth @ 6% |
Sum of taxes due |
| 1 |
<%= FormatCurrency(Request("amountConvert"),0) %> |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
<%= FormatCurrency(Request("amountConvert")*.5*.4,0) %> |
| 2 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 3 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 4 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 5 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 10 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 15 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 20 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 25 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
| 30 |
0 |
<%= FormatCurrency(Request("amountConvert")*1.06^(Request("taxBracket")+5),0) %> |
|
|
1) The PAT program should generate less tax than the MRDs from the
retirement plan.
2) The PAT growth should exceed the retirement plan growth for several
years.
3) The PAT benefit is tax free to heirs vs the retirement plan is tax
deferred.
4) The PAT program generates a tax free benefit for the heirs enabling
the heirs to purchase a new home, pay off debt, pay for a college expense,
settle the estate with liquidity, etc. PAT is ideal for lump sum expenses.
5) The retirement plan is not good for lump sum expenses because of
the extra tax generated upon distribution.
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<% end if %>
Copyright,
1998-2002, US Library Of Congress
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