Planning withdrawals from financial accounts

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Reexamination Certificate

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C705S037000

Reexamination Certificate

active

07630929

ABSTRACT:
A method for selecting among taxable accounts, non-deductible tax-deferred accounts, deductible tax-deferred accounts, and tax-exempt accounts from which to withdraw funds to minimize tax consequences prioritizes withdrawal from taxable accounts and non-deductible tax-deferred accounts over withdrawal from deductible tax-deferred accounts and tax-exempt accounts. The method also prioritizes between taxable accounts and non-deductible tax-deferred accounts by comparing (i) a future after-tax liquidation value of assets held in taxable and non-deductible tax-deferred accounts assuming withdrawals are made from the taxable accounts prior to a withdrawal from the non-deductible tax-deferred accounts and (ii) a future after-tax liquidation value of assets held in taxable and non-deductible tax-deferred accounts assuming withdrawals are made from the non-deductible tax-deferred accounts prior to a withdrawal from the taxable accounts.

REFERENCES:
patent: 5878405 (1999-03-01), Grant et al.
patent: 6687681 (2004-02-01), Schulz et al.
patent: 7016873 (2006-03-01), Peterson et al.
patent: 2003/0097324 (2003-05-01), Speckman
Cynthia Harrington, CFA, “Tax-Sensitive Portfolios-Getting an Edge on Uncle Sam”, www.horsesmouth.com/linkpo/72109.htm, pp. 1-5, Feb. 11, 2003.
Still River Retirement Planning Software, Inc., “Strategies for Liquidating Assets at Retirement”, www.StillRiverRetire.com, pp. 1-4, Feb. 20, 2003.

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