Municipal Bonds

Municipal Bonds distribute interest and/or dividends on an annual basis which are tax free at the Federal level, and often the State level. This functionality is not currently available in PlannerPlus. We recommend you use the workaround below to account for the tax free interest and/or dividends in this type of account. When you use this method the Planner will increase the account balance based upon your rates of return, but neither the interest/dividends or withdrawals will not taxed.

Follow these steps:

STEP 1: Head over to MyPlan > Accounts and Assets

STEP 2: ➕ Add the account as a Checking/Savings/Investment account

STEP 3: Give the account a descriptive name, "Muni Bond Fund" for example

STEP 4: Select Capital Gains as your tax treatment

STEP 5: Enter your Account Balance

STEP 6: Enter a Cost Basis that is higher than your Account Balance

STEP 7: Set your rates of return

STEP 8: Exclude the account from your withdrawal strategy


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