Recommended Software
Kleinrock's TaxExpert®
I subscribe to Kleinrock's TaxExpert®. I get a monthly CD which contains the Internal Revenue Code plus all regs, proposed regs, IRS Notices, IRS Publications, and Revenue Rulings, plus some letter rulings, and a complete explanation of the tax Code written by experts. (The CD comes a little later since CCH took over Kleinrock’s.) I can click from the explanation to the law. I can cut and paste text from the IRS sources right into my memos. I can retrieve by section number, or browse, or use a word search. The program remembers my search history for the session so I can instantly go back and forth among several source materials. Plus I can get all this over the web (though in slower more cumbersome fashion) when I'm traveling or want to bring my monthly CD up to the minute. Plus the website has a daily tax bulletin, and I receive a monthly eight-page printed and mailed summary of new developments. The writing is crystal clear, plain text-- no exclamation points or cute headlines. This fantastic service costs... $559 per year!
Two downsides: So little text is shown on each screen, it’s hard to read. Also, if you look at old Revenue Rulings (for instance) there’s nothing on the screen to tell you whether that ruling has been superceded. I know there are more expensive services out there; what I don't know is how they stay in business. You can find out more and order at www.kleinrock.com.
Brentmark Retirement Plan Analyzer
This is probably the most powerful and feature-filled software available to help planners analyze proposed plan distribution strategies from QRPs, IRAs and Roth IRAs (comparing up to 4 scenarios simultaneously), including income tax, estate tax and spousal rollover aspects, and determine whether it is worthwhile to convert a traditional IRA to a Roth IRA, as well as making numerous other useful determinations regarding retirement plan distributions, such as pre-59½ distributions, impact of life insurance and annual gifting. While easy to use right out of the box, it would be best used by a sophisticated planner with training to understand the impact that changing assumptions has on outcome. $570 for the downloadable version, single user. I use Brentmark’s smaller scale version, Pension Distributions Planner ($249) for quick minimum distribution projections. Brentmark Software, Inc., 3505 Lake Lynda Drive #212, Orlando FL 32817-8327; 1-800-879-6665 or http://www.brentmark.com/pension.htm.
Numbercruncher
This is not primarily a retirement distributions analysis product, but it does pre-59½ distribution calculations (Chapter 9). The program is fast and easy to use, like all Numbercruncher features. The printout shows the assumptions used in making the calculations, which is extremely helpful. Numbercruncher also does 51 other estate planning calculations. Indispensable tool for estate planners. $429 (plus shipping unless you use download version). Annual updates $99. Leimberg & LeClair Inc., PO Box 1332, Bryn Mawr, PA 19010, (610) 527-5216. Order at http://www.leimberg.com/products/software/buyNumberCruncher.asp
TigerTables
An excellent, easy-to-use and inexpensive source of estate planning computations such as QPRT, CRUT, GRAT, etc. Developed by estate planning expert and math/musical genius Larry Katzenstein, Esq., who says the IRS estate audit staff use this product. Still only $199. For info and to order, visit www.tigertables.com (also find there the § 7520 rates updated monthly).
ProTracker Advantage
A most interesting software program for financial planners. It’s a contact manager database type program for keeping track of your clients¼ok there’s lots of contact management programs out there, but this one may be the only one that integrates required minimum distribution (RMD or MRD) compliance into the program. It shows you a screen of all your clients who are subject to RMDs (including beneficiaries of inherited IRAs— not just over-70½ IRA owners, which are the only ones the IRA providers track). The program calculates each client’s RMD for the year and shows you how much has been distributed so far, so at an instant you can see which clients you need to follow up with to complete the year’s RMD. Though I didn’t test the program myself, it looks very user friendly... clear easy instructions in English etc. Designer Warren Mackensen’s service in a Navy submarine apparently helped prepare him to understand RMD compliance (just kidding Warren!). Find out more at www.protracker.com.