Penny User Guide
Discover how to effectively use Penny to nalyze scenarios, uncover opportunities, and answer complex planning questions quickly.
Last published on: April 10, 2026
What is Penny?
Penny is an AI-powered financial planning assistant built directly into Income Lab. It acts like a digital paraplanner—helping you analyze scenarios, uncover opportunities, and answer complex planning questions quickly.
Unlike standalone tools, Penny works with your actual client data inside Income Lab, so every insight is grounded in real numbers—not hypotheticals.
In simple terms: Penny does the research and analysis so you can focus on advising your clients.
Penny is especially powerful for turning plans into action. Whether you're analyzing a tax return, exploring Roth conversion strategies, or comparing planning scenarios, Penny helps you move from long-term strategy to real-time client decisions.
Why Use Penny?
Penny helps you turn complex financial planning into fast, actionable insights.
With Penny, you can:
- Upload and analyze 1040s and other documents in seconds
- Instantly summarize a client’s tax situation and key observations
- Explore marginal tax rates and Roth conversion strategies interactively
- Compare detailed strategies and see real tax impacts—bridging long-term plans to today’s decisions
- Identify opportunities across your entire client base with Practice Intelligence
And it’s not just tax—Penny also supports Medicare and ACA planning, IRMAA appeals, estate optimization, and more.
How Penny is Organized
Penny has three main modes:
1. Planning & Analysis
Use this for deep analysis on a specific client or household. This is the primary way most users interact with Penny.
2. Practice Intelligence
Ask questions across your entire book of business to uncover opportunities (e.g., “Which clients should consider Roth conversions?”).
3. Research
Ask general financial planning questions without needing client data.
How to Get the Most Value from Penny
For the best experience:
- Start with a structured tool (instead of chat)
- Use tools to analyze specific scenarios
- Use Ask Penny to explore follow-up questions
- Use Practice Intelligence to find opportunities across clients
Penny Tools Overview
Tax Planning Tools
Tax Planning Report
Get a full summary of a client’s tax situation, including income breakdown and key insights.
Scenario Comparison
Compare different financial decisions side-by-side to see tax impacts.
Marginal Rate Explorer
Visualize the true tax rate on the next dollar of income, including hidden tax cliffs.
Roth Conversion Analysis
Determine optimal Roth conversion strategies and understand the true cost.
Tax Detail Tool
Override projected numbers with real current-year data.
Estimated Tax Calculator
Calculate quarterly tax payments.
W-4 Withholding Calculator
Get exact instructions for completing W-4 forms.
NUA Calculator
Evaluate Net Unrealized Appreciation strategies for employer stock.
Medicare Tools
Medicare Roadmap
Understand enrollment timelines, costs, and key deadlines.
IRMAA Appeal Calculator
Estimate savings and generate instructions to appeal Medicare surcharges.
ACA to Medicare Transition
Plan coverage transitions and estimate healthcare costs before Medicare.
Estate Planning Tools
Inherited IRA Distribution Optimizer
Find the most tax-efficient withdrawal strategy for inherited IRAs.
Beneficiary Optimizer
Assign assets to heirs in a tax-efficient way.
Gift vs. Step-Up in Basis
Compare gifting strategies vs. inheritance tax benefits.
Charitable Giving Optimizer
Optimize charitable strategies like QCDs and legacy giving.
Additional Features
Ask Penny (Chat)
Ask follow-up questions or explore scenarios using natural language.
Practice Intelligence
Find planning opportunities across all clients.
Research Mode
Get answers to general planning questions.
Print Memo
Generate client-ready PDF reports.
Common Questions
Can I trust the results?
Yes. Penny uses deterministic financial models for calculations. AI is used to interpret questions and explain results—not to perform math.
Does Penny replace my role as an advisor?
No. Penny supports your work by doing analysis faster, but you remain the decision-maker.
Can Penny prepare or file taxes?
No. Penny provides tax analysis and planning insights, but it does not prepare or file tax returns.
Can I use Penny without a client plan?
Yes. You can upload documents like a tax return or W-2 and get analysis without creating a full plan.
What if I don’t know which tool to use?
Start with a tool if possible. If unsure, use Ask Penny to guide you.
Current Limitations
- Penny cannot edit or update Income Lab plans directly
- Some planning areas are still being expanded
- Uploaded documents are used for analysis but not stored
- Some advanced scenarios may require manual input
Best Practices
- Start with tools, then use chat for follow-ups
- Review outputs before sharing with clients
- Use Practice Intelligence regularly to uncover opportunities
- Combine Penny insights with your professional judgment
Summary
Penny is your AI-powered planning assistant inside Income Lab. It helps you analyze faster, uncover opportunities, and deliver better client outcomes—all while keeping you in control of the final recommendations.