On the pension screen you enter information related to your pension(s). Social Security, retirement accounts, and annuities each have their own input areas.
Key Concepts:
- This pension screen should capture the key features of your annual stream of income from a public or private pension including in a few cases, whether it is "covered" or "non-covered" and thus has an impact on WEP/GPO. See: Does the software account for the Government Pension Offset and the Windfall Elimination Provision?
Tips:
- Although entering the "annual amount" is self-explanatory, note that the "lump sum" field will create a taxable receipt and this income will be added to your regular assets. If you are using a lump sum rollover to move the pension to a tax-deferred retirement account, do not enter it as a pension. Instead, follow the guidelines here: Pension Rollover vs Lump Sum
- Most pensions are not indexed to inflation like Social Security. If it is fully indexed to inflation, giving it a full cost of living adjustment every year, enter 100% for inflation indexing. If the face value stays the same every year (more common), enter 0%.