Setting up accounts with mixed tax treatments
Boldin uses one tax treatment per account. If one account at your financial institution holds different types of money, you'll need to split it into separate accounts in Boldin so we can project your taxes accurately.
This applies whether you link your accounts or enter them manually. We're actively working to improve this capability and make it more seamless. Keep an eye on our Release Notes, where we share what's in progress and what's recently released.
Roth and tax-deferred money in the same account
Some institutions combine Roth and pre-tax money in one account, such as a 401(k) with both Roth and traditional contributions. In Boldin, these need to be separate accounts.
When you link through Plaid, we can't split these automatically because the institution's data doesn't break them out. Instead:
Find your Roth and tax-deferred balances. You can upload a statement, or read the balances from your statement or your institution's online portal.
Enter the account manually.
Create one account for the Roth balance and one for the tax-deferred balance.
Taxable accounts: Ordinary Income or Capital Gains
For each taxable account, you choose how its growth is taxed:
Ordinary Income: Choose this for accounts that mostly hold fixed income, like bonds. Interest is taxed as ordinary income.
Capital Gains: Choose this for accounts that mostly hold stocks. Growth and qualified dividends are generally taxed at capital gains rates.
If one account holds both
Boldin can only apply one tax treatment per account. For the most accurate projections, split a mixed account into two:
One account for your fixed income, set to Ordinary Income.
One account for your equities, set to Capital Gains.
You can find the balance of each in your statement or your institution's portal.