Savings - RightCapital Help Center

This is the third step in adding a Client. The client’s prospective savings are entered into different accounts, including their 401(k), IRA, Roth, and other retirement plans or saving vehicles. As a default, you will see a 401(k) savings for each client and taxable savings when using a modified cash flow planning method. Add savings by using the green "Add Savings" area on the right.

After the initial data entry has been completed, savings can also be added directly to a proposed plan within the Retirement > Analysis module. This allows for an easy comparison of scenarios with different contributions. Click here for more information on adding savings to the Retirement > Analysis module.

Employer Retirement Plans

The 401(k) card is a good representation of editing any savings cards. You can indicate the client’s savings and the employer’s matching schedule.

Enter savings as a percentage of the client’s salary or an annual dollar amount through the Target drop-down. If % of salary is selected, it will multiply the percentage by the value shown in the respective Salary cards on the Income screen. Use the Max option to have the system calculate the maximum allowable contribution for that savings type based on IRS guidelines.

% of match to Roth reflects the percentage of the employer contribution that will be deposited into the designated Roth account.

If the client is self-employed, check the Self-employed checkbox. The savings will reflect a percentage of Self-employment income rather than Salary and flow through the tax projections as self-employment savings.

For employer matching, indicate a primary match, secondary match, or flat match, all as a percentage of the salary stated in the Salary card.

Employer Matching

If you want to reflect a scenario where the employer matches 100% of contributions up to the first 3%, indicate 100% as the “Primary match” and 3% as the “Primary match to”.

The secondary match is above and beyond the primary match. If, in the previous example, the employer also matched 50% of contributions between 3% and 5%; you would set that up by indicating 50% as the “Secondary match” and 5% as the “Secondary match to”.

If you enter a flat percent match or flat dollar match, it will contribute the indicated percentage of salary or dollar amount irrespective of what the employee is contributing.

All matching information will apply to the value input in that card.

Adding Other Forms of Savings

For details about all of the available savings types, visit our Savings Details page.

You can also enter numerous additional savings types by clicking the Add Saving button.

You can mouse over each line with an ">" to see additional options:

You can enter multiple cards for each savings type.

The generic Tax-Deferred and Tax-Free options allow you to enter amounts that are contributed from outside the plan – they will be treated the same as employer contributions.

Employee vs. Employer Savings

Below is a table that illustrates which savings are funded from the client's income and which savings are funded by the employer from outside the plan. Advisors can also use this graph to see which column in the Retirement > Cash Flows > Accounts area is funded using each savings option. Retirement Savings will be capped at the IRS contribution limits, which grow by the tax inflation assumption as they are projected into the future.

Type of Savings	Contribution Comes From	Where employee contributions are located in the Retirement > Cash Flows > Accounts Tab	Where employer contributions are located in the Retirement > Cash Flows > Accounts Tab
401k	Employee	401k/403b	-
Roth 401k	Employee	Roth 401k/403b	401k/403b
After-tax 401k	Employee	Roth IRA	-
403b	Employee	401k/403b	-
Roth 403b	Employee	Roth 401k/403b (Client) 401k/403b (Employer)	401k/403b
457b	Employee	401k/403b	-
Roth 457b	Employee	401k/403b	-
Solo 401k	Employee	401k/403b	-
Roth Solo 401k	Employee	Roth 401k/403b (Client) 401k/403b (Employer)	-
401a	Employee	401k/403b	-
Traditional IRA	Employee	Traditional IRA	-
SIMPLE IRA	Employee	Traditional IRA	-
Roth IRA	Employee	Roth IRA	-
Backdoor Roth 401k	Employee	Roth IRA	-
Roth SEP IRA	Employee	Roth IRA	-
Roth SIMPLE IRA	Employee	Roth IRA	-
HSA	Employee	Health Savings Account	-
529	Employee	529	-
Taxable	Employee	Taxable	-
Deferred Compensation	Employee	Non-Qualified Pension	-
Employee Stock Purchase Plan	Employee	Taxable	-
Employee Stock Ownership Plan	Employer	401k/403b	-
Cash Balance Pension	Employer	Qualified Pension	-
Profit-Sharing	Employer	401k/403b	-
Tax Deferred	Employer	401k/403b or Traditional IRA	-
Tax Free	Employer	Roth 401k/403b or Roth IRA	-
SEP IRA	Employee with Self-Employment	Traditional IRA	-
SEP IRA	Employer with Salary	Traditional IRA	-

Planning Method and saving calculations

Taxable Savings is only available if you use the Modified Cash Flow or Goal Based calculation methods. In the standard Cash Flow calculation, we will automatically save any excess cash flows that are not explicitly spent. Visit this page for more information.