Create and Manage Accounts

• Use this page to view and manage accounts. An account is a group of investment holdings that are held in the same institution and that have similar characteristics.
• The Accounts page is used to enter data for the different types of assets that NaviPlan supports. You can use this information to calculate the clients’ future net worth and their retirement income.

• Assets can be entered in NaviPlan with a purchase date in a past year, in the current plan year, or in a future year.
  • When the purchase date is in a past year, cash flow is unaffected.
  • However, when the purchase date is in the current plan year or in a future year, the purchase causes a cash outflow for the purchase amount.

• NaviPlan makes the assumption that all non-qualified assets are held for a period of at least one year to take advantage of the lower taxation of long-term capital gains.

• Non-Qualified Deferred Compensation is entered as an Account Type in NaviPlan. To see the specific steps, see the How do I enter an account in NaviPlan? section below and select Non-Qualified Deferred Compensation.

1. Select for Add Account, and make a selection from the menu.

From here, your steps will vary based on what type of account you want to add.

Select one of the following account types:
Simple Account	Investment Portfolio
Mutual Fund	Cash Account
Non-Qualified Deferred Compensation

continued steps for Simple Account...

2. Enter basic information for the account including a Description, Account Type, Owner, Market Value, Cost Basis, and Asset Class Weightings.
   • You can also click the Return Rates and Savings Strategies links to modify return rates and savings information for the account.
3. To specify additional details, click .
   • From the Account Details dialog box, define Goal Funding, Hold $/%, and Valuation Date information for the account.
4. Follow the instructions in this step if they apply to the account you are entering.
   • If applicable, select Add Holdings and enter holding information into the Holdings subtab.
   • If applicable, select Add Savings Strategy from the Savings Strategy subtab and enter information for the savings strategy.
     • For more information on savings strategies, see the Savings Strategy Help page.
   • If applicable, select Add Redemption Strategy from the Redemptions subtab.
     • For more information on redemption strategies, see the Redemption Strategy Help page.
   • If applicable, go to the Return Rates subtab and enter the expected return rates for each field. By default, the investment income is reinvested into the account.
5. From the Beneficiaries subtab, define the Primary Beneficiary and Contingent Beneficiary for the account.
6. If any account fees apply, go to the Account Fee Setup subtab and select Override.
   • Enter the Annual Fee Amount, payment Frequency, and indicate where to Pay Fees From.
   • If the account fee is tax deductible, select the Tax Deductible option.
7. When you are satisfied with these options, click OK.

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continued steps for Investment Portfolio...

2. Enter basic information for the account including a Description, Account Type, Owner, and Goal Funding.
   • If applicable, indicate whether or not the account is Community Property.
3. If applicable, select Add Holdings and enter holding information into the Holdings subtab.
4. If applicable, select Add Savings Strategy from the Savings Strategy subtab and enter information for the savings strategy.
   • For more information on savings strategies, see the Savings Strategy Help page.
5. If applicable, select Add Redemption Strategy from the Redemptions subtab.
   • For more information on redemption strategies, see the Redemption Strategy Help page.
6. If applicable, go to the Return Rates subtab and enter the expected return rates for each field. By default, the investment income is reinvested into the account.
7. From the Beneficiaries subtab, define the Primary Beneficiary and Contingent Beneficiary for the account.
8. If any account fees apply, go to the Account Fee Setup subtab and select Override.
   • Enter the Annual Fee Amount, payment Frequency, and indicate where to Pay Fees From.
   • If the account fee is tax deductible, select the Tax Deductible option.
9. When you are satisfied with these options, click OK.

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continued steps for Mutual Fund...

2. Enter basic information for the account including a Description, Account Type, Owner, and Goal Funding.
   • If applicable, indicate whether or not the account is Community Property.
3. If applicable, select Add Holdings and enter holding information into the Holdings subtab.
4. If applicable, select Add Savings Strategy from the Savings Strategy subtab and enter information for the savings strategy.
   • For more information on savings strategies, see the Savings Strategy Help page.
5. If applicable, select Add Redemption Strategy from the Redemptions subtab.
   • For more information on redemption strategies, see the Redemption Strategy Help page.
6. If applicable, go to the Return Rates subtab and enter the expected return rates for each field. By default, the investment income is reinvested into the account.
7. From the Beneficiaries subtab, define the Primary Beneficiary and Contingent Beneficiary for the account.
8. If any account fees apply, go to the Account Fee Setup subtab and select Override.
   • Enter the Annual Fee Amount, payment Frequency, and indicate where to Pay Fees From.
   • If the account fee is tax deductible, select the Tax Deductible option.
9. When you are satisfied with these options, click OK.

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continued steps for Cash Account...

2. Enter basic information for the account including a Description, Account Type, Owner, and Goal Funding.
   • If applicable, indicate whether or not the account is Community Property.
3. If applicable, select Add Holdings and enter holding information into the Holdings subtab.
4. If applicable, select Add Savings Strategy from the Savings Strategy subtab and enter information for the savings strategy.
   • For more information on savings strategies, see the Savings Strategy Help page.
5. If applicable, select Add Redemption Strategy from the Redemptions subtab.
   • For more information on redemption strategies, see the Redemption Strategy Help page.
6. If applicable, go to the Return Rates subtab and enter the expected return rates for each field. By default, the investment income is reinvested into the account.
7. From the Beneficiaries subtab, define the Primary Beneficiary and Contingent Beneficiary for the account.
8. If any account fees apply, go to the Account Fee Setup subtab and select Override.
   • Enter the Annual Fee Amount, payment Frequency, and indicate where to Pay Fees From.
   • If the account fee is tax deductible, select the Tax Deductible option.
9. When you are satisfied with these options, click OK.

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continued steps for Non-Qualified Deferred Compensation...

2. Enter basic information for the account including a Description, Account Type, Owner, and Qualified Basis.
3. If applicable, select Add Holdings and enter holding information into the Holdings subtab.
4. If applicable, select Add Savings Strategy from the Savings Strategy subtab and enter information for the savings strategy.
   • For more information on savings strategies, see the Savings Strategy Help page.
5. If applicable, select Add Redemption Strategy from the Redemptions subtab.
   • For more information on redemption strategies, see the Redemption Strategy Help page.
6. If applicable, go to the Return Rates subtab and enter the expected return rates for each field. By default, the investment income is reinvested into the account.
7. If any account fees apply, go to the Account Fee Setup subtab and select Override.
   • Enter the Annual Fee Amount, payment Frequency, and indicate where to Pay Fees From.
   • If the account fee is tax deductible, select the Tax Deductible option.
8. Set-up the payment and taxation details under the Distribution subtab.
   • For Lump Sum distributions, select where to Direct After-Tax Proceeds, the Type of distribution, and the distribution Start Date.
   • For Periodic distributions, select where to Direct After-Tax Proceeds, the Type of distribution, and the distribution Start Date
   • Select an At Death Option to indicate how distributions will be affected by client death.
   • If applicable, select the Override option indicate the Year to Impose FICA Taxes and the % Applicable to FICA Taxes.

9. When you are satisfied with these options, click OK.

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Use this procedure to convert an account to a detailed account. Detailed accounts allow you to add holdings to each account and to allocate the holdings’ assets to different classes.

1. Under Holdings, click Add.
2. Enter information in all applicable fields.

If an account does not need to be converted to a detailed account and already has holdings, you can add more holdings by using the following procedure:

1. Under Holdings, click Add or the link for the account you wish to edit.
   Note: You can also use to open the Account Details dialog box.
2. On the Holdings tab, click Add Holding.
   OR
   Click beside Holdings to add a specific type of account.
3. Enter information in all applicable fields. When you are satisfied with these options, click OK.

1. Click for the associated account.
2. Go to the Qualified Account Setup subtab.
3. If assets will be withdrawn from the qualified fund prior to the maturity date and no penalties are associated with the early withdrawal, select the Waive early withdrawal penalties check box.
4. If the client is permitted to delay required minimum distributions beyond the age of 70 1⁄12, select the Delay RMDs check box and then select a salary from the list.
5. If the account is a 403(b), in the Pre-1987 Account Balance field enter the market value of the annuity on December 31, 1986. This amount is not included in calculations of RMDs until the owner reaches the age of 75 or the age of retirement, if this occurs after age 75.
6. From the Primary Beneficiary list, select the primary beneficiary.
7. From the Contingent Beneficiary list, select the alternative beneficiary.
8. Salary-deferral, employer-paid, or self-employed plans do not require RMDs. For these types of plans, select the Treat As Deferred Compensation Plan (i.e. no RMDs) check box.
   Note: Since RMDs do not apply to deferred compensation plans, the Delay RMDs check box is not accessible when the Treat As Deferred Compensation Plan (i.e. no RMDs) check box is selected.

Note: The Savings Strategy link is not accessible if the account is an inherited IRA.

1. Under Savings Strategy, click the link for the account you wish to edit.
   Note: You can also use to open the Account Details dialog box.
2. Go to the Saving Strategy tab.
3. Click Add Savings Strategy to display a new data-entry row.
4. Enter information in all applicable fields to define how savings are entered into the account. When you are satisfied with these options, click OK.

529 plans

When the client and co-client die, contributions from the client or co-client end, but contributions from Other continue. The 529 plan asset is not sold, but carries on and can be redeemed to cover the education goal to which it is linked. Savings strategies that are defined to end on retirement end when the beneficiary retires.

Coverdell accounts

To set up a Coverdell account, the account’s distributions beneficiary must be a dependent or Other and cannot be the client or co-client. When both clients die, contributions from the client or co-client end, but contributions from Other continue.

Setting-up a 529 plan or Coverdell account follows the same steps as creating any other account. The only exception being that once the plan/account is created you should:

1. Click for the plan/account.
2. From the Donor and Distributions Beneficiary menu, select a donor for the account and beneficiary to receive the benefit.
   Note: When the donor and the distributions beneficiary are the same person, assets from the 529 plan are included with the donor’s gross estate.
3. To set up a regular or lump-sum savings strategy, go to the Saving Strategy tab.

To set up an UTMA account, the asset’s owner must be a dependent and not the client or co-client. When both clients die, contributions from the client or co-client end, but contributions from Other continue. The dependent-owned asset is not sold, but carries on and can be redeemed to cover the education goal to which it is linked. The UTMA custodian is changed to Other on second death.

Setting-up an UTMA account follows the same steps as creating any other account. The only exception being that once the account is created you should:

1. Click for the account.
2. From the Owner list, select a dependent.
3. Select the UTMA Account option.
4. From the UTMA Custodian and UTMA Donor menus, select the custodian and donor.

• Identifies the asset as community property.
• Most property acquired by a married couple residing in a community property state is considered to be owned equally by both parties.
• This check box is not available if the client’s or co-client’s tax filing status is single.

• Opens the Import Accounts dialog box or updates any previously imported accounts.
  Note: Depending on your settings or permissions these options may not appear.

• Opens the Previously Incurred Investment Activity dialog box, this dialog box shows income earned before the valuation date for all non-qualified accounts.

Asset Class Weightings

• Defines the underlying asset class of the account. From the list of options, you can:
  • Select a single asset class
  • Enter multiple asset classes by selecting Manual Classification

Holdings

• Number of holdings contained in the account.

• Opens the Goal Funding dialog box, this dialog box gives you a summary view of which accounts and assets are funding which goals.