Step 1: Navigate to My Plan > Accounts and Assets and Press Savings.

Step 2: At the bottom of your listed accounts, press "Add an account +".

Step 3: Click the "Account Type" dropdown and select that this is an Investments/Savings/Checking account.

Step 4: Choose if you would like to link the account or manually enter the account info

Step 5: Enter a descriptive account name

Step 6: Enter the current balance

Step 7: Select Capital Gains as the tax treatment

Your cost basis is the original investment amount for tax purposes. This is usually the purchase price, adjusted for stock splits, dividends, and return of capital distributions.

Think of the turnover rate as a way to manage realized gains above those created by distributions. It is the percentage of your account that gets traded on an annual basis resulting in realized gain/loss events.

Capital gains are not taxed until they are realized, and this isn’t an issue in your retirement accounts (they have zero cost basis). Gains in after-tax accounts are taxed at preferential or lower capital gains rates and not ordinary income tax rates. The brackets are 0%, 15%, and 20% and depend on your taxable income. You may incur capital gains taxes in a taxable account, when you 1) sell shares, and when 2) there is internal buying and selling in the account. You may enter a turnover rate to account for internal buying and selling in the account.

The tool will take the account balance and cost basis, realize the turnover rate as gains, and tax the gains at your long-term capital gains rate. Passive investors (e.g., ETF/index fund holders) typically have a low turnover rate. Actively managed portfolios or frequent trading may result in higher rates (e.g., 10%+).

Example: With a $100,000 balance and $70,000 cost basis, a 10% turnover rate means $3,000 in gains (10% of the $30,000 unrealized gain). This amount is taxed and added to your cost basis in future projections.

Step 10: Select a Rate of Return

You can choose from recommended historical rates (e.g. Moderate or Moderately Aggressive), or enter your own. This can be a single custom rate, or a range using Optimistic and Pessimistic return assumptions.

Enter the percentage of the balance paid annually as dividends. This is a portion of your rates of return entered above.

By default, dividends are reinvested, increasing both the account balance and cost basis in your projections. They're also treated as qualified dividends, so any related taxes are included in your annual capital gains tax modeling, in line with IRS rules.

Charts

You may view your Realized Gains in the Insights > Taxes > Gross Taxable Income by Source Chart.

You may view your Capital Gains Tax Payments in the Insights > Income & Expenses > Estimated Expenses Chart.