For clients with Roth IRAs, you can enter ongoing contributions within the Savings section of the Profile (or the Savings step of the initial data entry process). These savings cards can be added by clicking Add Saving in the upper right, and selecting Roth IRA:
Roth IRA Savings Data Entry
Click on this card to open a data entry drawer on the right side of your screen, allowing you to input the contribution information:
1
The Saving name will default to [Client's] Roth IRA, but you can enter a custom name if you'd like. In joint plans, you will also want to choose either the client or the co-client as the Owner.
2
Enter the client's annual Contribution to their Roth IRA. Depending on the option you choose in the Target field, this can be an annual dollar amount, a % of the client's income, or the maximum contribution amount.
3
Specify the duration of the contributions using the Saving starts and Saving ends fields. By default, these will be set to 'Already started' and '[Client's] retirement' respectively.
4
When entering an annual dollar amount, you can choose to specify an optional Annual increase in the lower left of the card.
Additional Information
Contribution Limits and Taxation
Contributions are capped at the IRS limit ($7,000 for 2024 + $1,000 catch-up for those 50 and over). This cap includes both Traditional IRA and Roth IRA contributions.
Cash Flow Location & Details
Client contributions can be tracked in two locations within the Retirement > Cash Flows:
- The Summary tab > Planned Savings column
- The Invested Asset tab > Planned Savings column
By default, IRA and Roth IRA contributions will be funded using taxable assets in years with cash flow deficits. If the "Use taxable account to fund IRA and 529 saving when current year cash flow is inadequate" setting is unchecked, IRA contributions will not occur in years with inadequate cash flows. You can find this setting in the Gear Icon > Settings > Methodology tab of each client plan:
