Deferred Compensation Plans: Adviser Go US

Step by Step how to enter a Deferred Compensation Plan

This guide will give you a step by step example of how to enter a Deferred Compensation plan into the US Software. 

This is just one example of how a plan may be entered. The software allows you to customize it to your client's needs. 

From the dashboard click the + button in the bottom right corner and select Retirement > Retirement Plan.

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1. Owner: Select the Owner of the Deferred Compensation Plan. For the purposes of this example I will use "Chelsea". 

2. Type: Select "Deferred Compensation" under the dropdown menu.

3. Name: Enter the name you would like the plan to be listed under. In the example I will name it "Chelsea's Deferred Compensation Plan". 

4. Balance: Enter the current balance of the plan. e.g. $50,000

5. Contribution: Select "Amount", "Amount with inflation", or "Percentage of Income". In this example I am selecting "Amount". 

6. Contribution Amount: Enter the amount of compensation deferred. e.g. $10,000.

7. Select "Annually". 

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8. Employer Contribution: Does their employer contribute as well? Yes.

9. Employer Contribution Type: From the dropdown menu select "matching" or "fixed". In this example the employer matches their annual contributions. So I have selected "matching"

10. Matching Contribution: 100%

11. Matching Income: 100%

12. Select Timing

Timing: On the timing screen ensure that you have set the contribution start and end date correctly. In this example Chelsea will be contributing to her deferred compensation plan starting now until she retires.

Select "Done" to save this plan. 

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This will take you back to the dashboard where you can see the plan under the retirement section. 

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You can also at this point schedule future withdrawals so that you can accurately forecast retirement income. To do this click on the Chelsea's deferred compensation plan to reopen it and go to Planned Withdrawals > Add Withdrawal. 

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1. Name: Yearly Deferred Comp Withdrawal 

2. Type: Select "Fixed Amount Without Inflation".

3. Amount: Enter $30,000 Annually(this is the amount that will be withdrawn yearly from the plan)

4. Distribution Type: Select "Each" as each withdrawal will be the same amount. 

5. Recurring: Select "yes" as this will be a recurring yearly withdrawal.

6. Timing: select Timing. 

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Set the start event for these withdrawals. In this example Chelsea is planning on starting withdrawals at her retirement event.

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Set the end event for these withdrawals, in this example Chelsea plans on withdrawing from this account until her mortality event. Select Done to save. 

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This will take you back to the dashboard. If you select the Details > Year View screen and scroll over to the year Chelsea retires (65) you will now be able to see that the software is scheduling withdrawals from her Deferred Compensation plan starting at age 65. 

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Note: Deferred Compensation plans are tax deferred so the software will not apply income taxes until withdrawals start to occur. You can view this on the taxes tab. 

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