The 'Use taxable account to fund IRA and 529 saving when current year cash flow is inadequate' setting can be found within the Gear Icon > Settings > Methodology tab of each client plan:
This setting can be utilized to fund IRA and 529 savings by automatically liquidating taxable assets in years when clients do not have sufficient cash flows. By default, this setting is checked.
When this setting is checked, RightCapital will first fund IRA, Roth IRA, and 529 contributions using available cash flows. If there are insufficient cash flows in any year, RightCapital will then look to fund those contributions using taxable assets. This will automatically calculate a withdrawal (and taxes) from the client's taxable investments to maintain these savings goals. If there is no available money in taxable accounts, RightCapital will not reflect the contributions in those years.
If unchecked, RightCapital will only reflect IRA, Roth IRA, and 529 savings in years where clients have the available cash flows. If there are insufficient cash flows in any year, contributions will not occur.
