Transcript:
In this training, we’ll be walking through how to enter qualified retirement accounts into Voyant.
To do this, we’re going to start by clicking the plus button in the bottom-right corner and selecting the Retirement tile.
From here, we’re going to go directly into the Retirement Plan section. This is where you’ll find all qualified retirement account types.
By selecting the dropdown menu, you’ll see all of the available retirement account options, including:
- Traditional 401(k)s
- Roth 401(k)s
- Traditional IRAs
- Roth IRAs
- And other qualified retirement account types
For Judy, we’re going to select the Roth 401(k) option, since that’s the retirement plan she has through her employer.
We’ll give the account a name, which is what will appear both on the Dashboard and within reports.
Next, we’ll enter the current account balance and the cost basis.
Then we’ll enter contribution information.
Judy contributes a percentage of her income into this account, although you also have the option to enter:
- A fixed amount
- Or an amount that inflates over time
In this example, Judy contributes 10% of her income.
One hundred percent of her contribution is going into the Roth portion of the account.
Her employer is also providing a match. The employer is matching contributions up to 5%, and they are matching at a 75% rate.
One hundred percent of the employer match is going into the traditional portion of the account.
We’re also going to link this retirement account to Judy’s employment income.
Judy is not making any non-Roth after-tax contributions, so we’ll leave that section blank.
Next, we’ll move to the Growth section and leave the account at a fixed growth rate of 6%.
Under Fees, we’ll leave the product fee at 0.5%.
For Timing, we’ll leave the contribution timing at the defaults:
- Contributions begin immediately
- And end at retirement
These defaults are standard for qualified retirement accounts, so in most cases you’ll leave them unchanged.
Under Beneficiaries, I’m going to select Judy’s spouse as the beneficiary for this account.
Next, under Steps, you do have the option to:
- Step contributions
- Adjust growth assumptions
- Modify withdrawal limits
- Or change timing assumptions over time
You can also create transfers from other accounts, configure withdrawal limits, and schedule planned withdrawals if needed.
One important thing I do want to point out is that this account automatically follows Required Minimum Distribution (RMD) rules based on the client’s date of birth.
That means you do not need to manually schedule RMD withdrawals. The software handles those automatically.
I’m now going to click Save and Add Another so that we can enter Philip’s retirement account.
Philip has a traditional 401(k) through his employer.
We’ll enter that account into the plan with a current balance of $89,000.
Philip contributes 8% of his income into the account.
His employer also provides a match:
- Matching up to 6%
- At a 100% match rate
We’ll link the account to Philip’s employment income.
For Growth, we’ll leave the account at 6%.
Fees will remain at 0.5%.
The beneficiary for this account will be Judy.
And we’ll leave the remaining settings at their defaults.
We’ll click Done to save.
Now, we should see the cash flow chart become more fully funded.
You’ll also notice some additional colors appearing within the chart compared to what we had previously.
For example, once Philip reaches age 75 and RMDs begin, we’ll see withdrawals from his traditional 401(k) flowing into the plan.
Later, we’ll also see withdrawals from Judy’s Roth 401(k) once her RMDs begin at age 75 and as funds are needed to help support retirement expenses later in the plan.
If we go into Year View, we can review more detail about what’s happening during those years.
In the Cash Flow tab, we can see Philip’s traditional 401(k) withdrawals occurring.
If we move over to the Retirement tab, we can review the retirement account withdrawals directly.
You can also click into the account details and see whether any withdrawals were classified as Required, which indicates that they were RMDs.
You can scroll through additional years within the plan to review how much of each withdrawal was required versus how much was withdrawn to satisfy retirement spending needs.
You can also click into Judy’s account to compare:
- Required withdrawals
- Versus actual withdrawals occurring within the plan
Next, if we move to the Let’s See screen and switch to the Dual Chart view, we can compare:
- Cash Flow
- And Taxes side-by-side
We can also review the Expenses and Assets charts.
By turning on Details, we can see the balances of these retirement accounts across different years within the plan.
You can even view:
- The balances at retirement
- Transfers occurring at mortality events
- And inherited IRA transfers to a surviving spouse
If you turn on the legend, you can isolate and review specific accounts individually.
For example, you could pull out just the two retirement accounts we entered today and review those independently within the chart.
I hope this has been helpful.
If you have any questions, remember that you can always click the name of your client in the top-right corner, select Request Support, enter your question into the text box, and share client access with our support team.
Thanks for listening.