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TRAK's Paycheck Federal 1040 calculator provides a method for increased deferrals to a qualified plan without any change in take home pay. It allows for illustrating moving money from an anticipated federal 1040 return to the qualified plan without any change in take home pay. This allows:
| 1. | Satisfying or reducing a possible shortfall in retirement. |
The Federal 1040 calculator illustrates how to increase deferrals by:
| 1. | Increasing the number of withholding allowances being claimed, the federal return is then decreased. |
| 2. | The increase in pay is then reduced to the original value by increasing the qualified plan contributions. |
| Sales Note: | Before moving to the 1040 calculator, have the client commit to a salary reduction. The 1040 calculator can be used to increase this reduction by moving their federal 1040 refund to their qualified plan. |
Additional Features
| 1. | Determine what can be done to maximize voluntary retirement deposits at any date through the end of the year. |
| 2. | Change any paycheck variable and instantly see the effects on the paycheck and projected Federal 1040 calculations. |
| 3. | Evaluate a client's tax bracket information for better strategic planning of Roth contributions. |
| 4. | Calculate balloon contributions for the balance of the year or level TSA contributions for the entire year. |
| Notes: | A spouse's paycheck, when relevant, should be included in the illustration. Click here for how to add a spouse's paycheck. |
The Paycheck Federal 1040 calculator is accessed by pressing the "1040..." button ( ) button found at the top-right of the Paycheck calculator.
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