The Estimated Terminal Tax Rate is used to set the tax adjustment on tax-deferred assets within the Tax Strategies module. This can be found within the Tax > Tax Strategies tab of each client plan. Click the 'Action Items' button at the bottom of the page to open a new drawer, revealing a set of tax strategies that you can model:
Several charts in the Tax Strategies module display "tax-adjusted ending assets". These values are tax-adjusted in that we apply an assumed tax rate to any tax-deferred assets, representing the taxes that would still be due on those assets at death. In other words, it is the estimated rate heirs would be subject to upon distribution of assets. You can adjust that assumed tax rate using the Estimated terminal tax rate slider in the Action Items:
Please note that the estimated terminal tax rate will only impact the values displayed within the Tax Strategies tab. This slider will not have an impact on other areas of the software, including the Retirement Analysis when importing a tax strategy proposal (put differently, the Retirement Analysis reflects a 0% terminal tax rate).
