FAQ: Income Distributions

Frequently Asked Questions

Need assistance? RightCapital is here to help! Please use the common questions and answers below to assist you in generating financial plans. For additional assistance use the link to our support team at the bottom of the article.

1

What is the difference between creating a distribution card that converts assets to Roth versus using the Roth conversion tool within the Tax > Distributions module? 

Answer: Creating an income distribution card will allow you to specify the exact dollar amount of the distribution and the year it takes place. In contrast, the Tax > Distributions module (Roth tool) provides the ability to fill up to specified tax brackets and IRMAA thresholds over several years while giving the client a visual representation of the value Roth conversions have within the plan.

2

Can I create a distribution card to pull from a specific account? 

Answer: In the Distribution card you can specify the account type and owner from which the distribution is pulling. Since RightCapital only projects account buckets (IRA, 401(k), Bank) within the future cash flows, you cannot specify the exact account.

3

Where can I track account distributions within the financial plan?

Answer: The best place to track account distributions within a financial plan would be to navigate to the Retirement > Cash Flows > Summary Tab > Planned distributions column. You can also visit the Retirement > Cash Flows > Accounts tab and use the drop down menu to select withdrawals from accounts. 

4

How do I illustrate an IRA rollover? 

Answer: Under Profile > Income section, click  'Add Income' > 'Distribution' - select the bucket of money you would like to make the rollover from, use the deplete over # of years' setting and set it to 1 year, select 'rollover to IRA' option, indicate the year you would like this to occur and click 'save'.

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For additional assistance creating income distributions within RightCapital please contact Support.