An Explanation of the Above Columns

End of Tax Year illustrates values as of December 31 of each year.

Age is the customer's age on December 31 of the tax year.

Ordinary IRA

Annual After-Tax Income summarizes three columns from the Ordinary IRA Ledger page and is calculated Income From IRA, minus Income Taxes, plus Side Fund Income.   Thus, at age 70,  79,160 - 22,164 + 2,027 = 59,023.

After-Tax Income To Date is carried over directly from the Ordinary IRA Ledger page.

After-Tax Lump Sum Death Benefit is slightly more complex. From the Ordinary IRA Ledger page, take the IRA Value, subtract the income taxes due at death, then add the Side Fund Value. For example, at the end of year one:

$112,141 (IRA Value)
-  31,399  (28% Tax Bracket times $112,141)
+     588  (Side Fund Value, which is calculated using a "net" after-tax interest rate (see Ordinary IRA Ledger page).
$81,330 

Total Benefit is the sum of the After-Tax Income To Date and the After-Tax Lump Sum Death Benefit columns.   This is perhaps the most useful information to be found in the software.  One can easily compare the Total Benefit columns of the Ordinary and the Roth IRA to decide which plan best meets his/her needs.

Roth IRA

Annual After-Tax Income summarizes three columns from the Roth IRA Ledger page, Income From IRA, minus Income Taxes, less Side Fund Reduction. Thus, at age 70 in the example above,  79,160 - 0 - 7,829 = 71,330. 

After-Tax Income To Date is carried over directly from the Roth IRA Ledger page.

After-Tax Lump Sum Death Benefit is quite simple after the fifth year when the Roth IRA is deemed to be free of taxes. From the Roth IRA Ledger page, take the IRA Value, subtract the income taxes due at death (none), then add the Side Fund Value. For example, at the end of year ten:

$293,496 IRA Value (tenth year value from the Roth IRA Ledger page)
-          0  Income Taxes Due At Death (Tax Free after 5th year)
- 46,379  Side Fund Value (For an explanation of why this is a negative number see the Roth IRA Ledger.)
$247,117

The After-Tax Lump Sum Death Benefit for the Roth IRA during the first five years, however, is relatively complex because you must take into account the taxes that have been paid on the conversion.  For example, at the end of the first year, none of the taxes due for conversion have been paid.  $2,000 has been contributed on an after-tax basis:

$112,141 IRA Value (first year value from the Roth IRA Ledger page)
-  30,839  Income Taxes Due At Death (112,141 - 2,000) X 28%
-          0  Side Fund Value
$81,301

At the end of the second year, 25% of the taxes due at conversion have been paid.   $4,000 has been contributed after-tax:

$125,496 IRA Value (second year value from the Roth IRA Ledger page)
-  27,020 Income Taxes Due At Death (125,496 - 4,000 - (100,000 X 25%)) X 28%
-    7,356  Side Fund Value
$91,120

At the end of the third year, 50% of the taxes due at conversion have been paid.   $6,000 has been contributed after-tax:

$140,186 IRA Value (second year value from the Roth IRA Ledger page)
-  23,572 Income Taxes Due At Death (140,186 - 6,000 - (100,000 X 50%)) X 28%
-  15,243  Side Fund Value
$101,371