Overview of your pensions and annuities in VeriPlan


In the input table in Section 2 of the yellow-tabbed "3-YOUR PENSIONS & ANNUITIES" worksheet, you can enter information on up to 10 pensions and annuities for Earner #1 and/or Earner #2.

Regarding your annuities, if you have signed binding contracts, then you should enter information about these contracts in the table. ENTER ONLY SPECIFIED AND COMMITTED PAYMENTS TO BE RECEIVED ON A MONTHLY BASIS.

Regarding your pensions, ENTER ONLY SPECIFIED AND COMMITTED RETIREMENT PAYMENTS TO BE RECEIVED ON A MONTHLY BASIS from employer sponsored "defined benefit" pension plans.

* In a "defined benefit" pension plan, an employer commits to make specified payments during retirement.

* These "defined benefit" plans are different from personal or employer sponsored "defined contribution" retirement plans, such as IRAs and 401(k)s, into which employees and/or employers might make contributions. However, in a "defined contribution" plan, future payments are not specified nor are future payments guaranteed. The future value of a "defined contribution" plan depends upon your contributions, any employer contributions, investment appreciation, administrative and investment costs, withdrawal rates, etc.)

Elsewhere, VeriPlan provides places for you to enter information related to your "defined contribution" plan assets.

* Regarding your potential future personal contributions and your employer's contributions to "defined contribution" retirement plans, such as IRAs and 401(k)s, you can enter your personal information on the yellow-tabbed '12-Your Tax-Advantaged Plans' worksheet and you can set your preferences for future contributions on the orange-tabbed '3-Tax-Advantaged Plan Tool' worksheet.

* For your current "defined contribution" asset holdings, such as cash, bond, stock, or other assets held in your 401(k), 403(b), IRA, KEOGH, or similar accounts, enter these assets on the appropriate yellow-tabbed asset worksheet. Where you enter the information will depend on the kind of asset that you own, and not the type of account.

* Note that for each of your individual assets that you enter on its asset class worksheets, VeriPlan has a column to indicate whether it is a currently taxable asset (coded 1), a tax-deferred asset (coded 0), or a Roth 'never-taxed' asset (coded 2). VeriPlan projects each of your assets separately and uses your taxability entries to determine if and when each of your assets will be taxed. VeriPlan explains how it does this in the "Overview" Section 1 of the orange-tabbed "3-Tax-Advantaged Plan Tool" worksheet.

Do not enter any expected Social Security payments on this worksheet. Instead Social Security information is collected on VeriPlan's orange-tabbed '2-Retirement Tool' worksheet.




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Demonstrating a comprehensive projection for a professional couple with children, the VeriPlan tutorial can help you to understand what VeriPlan can do. Use this link to download a free copy of the VeriPlan tutorial file:

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