Troubleshoot taxes and inflation in the Lifetime Planner

The number from the Tax Estimator may be lower than your calculated effective income tax rate on the Taxes & inflation page. There are several possible reasons:

The Tax Estimator calculates your federal tax rate. The effective income tax rate used on the Taxes & inflation page includes federal, state, and local taxes.
Money calculates retirement tax rates automatically. Your tax rate after retirement is based on the effective income tax rate specified on the Taxes & inflation page in Lifetime Planner and your projected income during that period.
You may have income (such as gift money, an inheritance, or proceeds from the sale of a house) that is taxed at a different rate than your investment and salary income or may even be tax-exempt. If so, you can enter a custom tax rate for that special income as you use the New Income wizard to add that income to your Lifetime Plan:
1. In the Lifetime Planner, click Income, and then click Other income.
2. Click New Income.
3. Follow the instructions on the screen. On the What's the growth rate? And what about taxes? page, in the Tax rate on this income list, select No tax (0%) or A custom rate of.
  If you select the custom rate, enter the rate in the box to the right.
4. Click Finish.