Tax Lab Video Tutorial

welcome this video will walk you through

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the new income lab tax lab the the new

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updates in the income lab tax lab are

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meant to streamline your tax planning

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and make it easier than ever to compare

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and analyze the impact of different Tax

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Strategies in your plans to find the tax

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lab from your main households find the

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households you want to use so go ahead

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and select a

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household then from that household

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dashboard locate the tax laab icon on

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your left side

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navigation once your plan loads you'll

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start to see the tax lab interface the

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new updates we've made are really meant

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to make it easier than ever for you to

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compare plans and really treat the tax

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lab as a Sandbox where you can quickly

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compare analyze different plans analyze

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different strategies in those plans and

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then decide when you want to apply the

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right strategy for your clients so first

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starting at our main compare section

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here we can quickly select different

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strategies just by opening this drop

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down this gives you a quick way to

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select the strategies you want to

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compare if you're also comparing

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different scenarios or different plans

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you can open the dropdown and you'll see

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the list of all your different plans in

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this household making it easier to

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compare two completely different

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scenarios or plan side by side we also

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have this button here where you can

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switch so if you're trying to just

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flip-flop which is the main plan or your

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main what if plan vers versus the plan

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you're comparing it to you can simply

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click this button here in the middle

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then to view all your strategies you can

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then quickly scroll down and click the

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view strategies button in our new

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interface here you'll see that you'll

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still have your green icon identifying

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your optimal strategy the software will

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highlight in this gold check boox the

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one that you're currently viewing in the

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tax lab and then as you scroll down you

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can even see the blue icon here to know

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which strategy is currently being used

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in the plan to view a different strategy

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in the tax lab let's say for example

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here if I want to view the Roth

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conversion 22% bracket you can click any

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section here as it's highlighted in blue

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or click the select to select that

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strategy once you selected that strategy

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the software will indicate that this is

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now the one that you're viewing in the

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tax lab you can do the same thing for

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the strategy you'd like to compare to

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and then once you're done click the Xbox

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to minimize

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once you scroll down here you'll first

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see your main statistics section here

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we've made it really easy to understand

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the impact of doing one strategy over

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another over the longterm or the

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lifetime of the plan so here we can show

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the clients that if we do this Roth

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conversion strategy versus the tax will

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tax defers taxfree it will save their

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average tax rate here by

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7.3% you'll see with the new interface

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as you hover over each of these cards

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then it will expand and show you those

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percentages by each strategy so we can

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see that this is the average tax rate of

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our Roth conversions 22% bracket

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strategy versus this is the average tax

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rate of the tax will tax deferred

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taxfree so as you hover you do have the

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ability to see those cards expanded if

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you want to keep it expanded you can

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simply click on these sections and then

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it will stay expanded as you are looking

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at this section we also added this

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toggle here some users will prefer refer

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to maybe not highlight the net Legacy or

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maybe minimize the average tax rate box

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this just really lets you customize

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which sections are visible on the screen

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here by moving the toggle boxes on or

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off and then similar in the software

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you'll still have the slider here at the

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top where you can quickly toggle between

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real and nominal values and even choose

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to have rounded values or check that off

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if you do not want to see rounded values

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here's where you're going to see the

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main updates next you'll have the other

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sections of the compare similar to what

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you're already used to so we've got our

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total tax section here where we can

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analyze the total taxes paid in each

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year between both strategies so so here

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with the blue bars we can see the total

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taxes paid with the Roth conversion

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strategy initially paying higher taxes

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early and then seeing the taxes decrease

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after we finished our Roth conversions

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when compared to the tax will tax

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deferred taxfree plan strategy which

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you'll see in yellow showing how that

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one pays less taxes up front but then

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increases later you can then open the

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table view below to see more of a

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detailed spreadsheet

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view the tax bracket section gives you a

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similar view but instead of total tax

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here we're looking at the tax brackets

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that the clients are in in each year and

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we also have a table view here below as

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well one of our user favorites here is

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the break even section this allows you

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to really run a quick Break Even

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analysis help the clients in this case

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understand how long they have to live

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for doing the Roth conversions to have

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been a good long-term decision when

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compared to the taxable tax deferred

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taxfree strategy you also have a table

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view here at the bottom as well it's

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important to note these table views are

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nice especially if you're trying to see

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the ages of the clients at each year of

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the

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plan that is the compare section you

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also then in the tax lab have the

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Explorer section here on the left side

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of our screen once we click explore

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we can either keep looking at the same

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strategy we selected on the compare

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section or we can open the drop down

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here to analyze and explore a different

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strategy you can then even open the view

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strategy section here to select the

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strategy from here that you'd like to

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explore but this drop down does give you

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a quick option to do so then when you're

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in the explore section you've got the

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grade income section here where you can

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look at any year of the plan really

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highlighting how the client's income is

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filling their tax brackets and even

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looking at how their income is filling

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the Medicare Irma brackets as well as

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you scroll to the bottom you'll see the

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estimated action section and then you

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can open the Full Table view at the

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bottom for a detailed spreadsheet

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breakdown in the Explorer section we've

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also got the taxes tab that will give

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you a detailed breakdown of the annual

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taxes here you can open the table View

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and for example this is a great place to

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see the Medicare herur charges paid

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every year of the plan anal Li state

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taxes for example or just see the total

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tax gross total income and the effective

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total tax

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rate last tab here in the explore

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section is the portfolio tab which gives

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you a great visual of how the portfolio

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makeup changes along the way as we are

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doing this strategy so here we can see

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with this Roth conversions we're going

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to convert and see our tax deferred

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balance in light blue go down as our tax

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free balance increases getting to the

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point where we're have the majority of

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our portfolio in that taxfree

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status and you can also show the table

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view here to see how that moves more in

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that spreadsheet

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format that covers the main sections

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here in the tax lab you can click the

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three dot icon here to go to the

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advanced settings if you're looking to

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do more custom entries so here if we

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open up the taxes of the advanced

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settings here you can add a local tax

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rate you can quickly change your tax

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strategy here you can customize some

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Roth conversions here so if you're

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looking to put an annual dollar cap on

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your Roth conversions specify the years

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when the Roth conversions are allowed or

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if you want to leave a certain balance

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in your tax deferred account so the

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software doesn't convert every single

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dollar out of the tax deferred into the

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Roth you can put that amount that you

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want to leave in that balance here make

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sure to save your inputs if you are

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putting any custom uh entries here and

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then once you're done you click run plan

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and go back to tax

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lab that's it thank you for viewing this

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video please reach out to our team if

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you have any questions