Model boundaries and glossary

YARCalc glossary

Plain-language definitions for terms used throughout the planning screens and reports.

When this applies

Use this whenever a label or result uses unfamiliar planning terminology.

How YARCalc uses it

• Tax-deferred: an account normally taxed as ordinary income when withdrawn.
• Taxable brokerage: an account where dividends and realized gains may be taxable.
• Tax-free: a qualified account whose modeled withdrawals are not ordinary income.
• Cost basis: the modeled tax investment in a taxable position.
• MAGI: modified adjusted gross income used by rules such as IRMAA.
• RMD: required minimum distribution from applicable tax-deferred accounts.
• IRMAA: income-related adjustment added to Medicare premiums using prior-year income rules.
• Percentile path: a ranked simulated outcome, not a confidence guarantee.
• Drawdown: decline from a prior balance peak.
• Guardrail: a rule that changes flexible spending or flags action under stress.
• Home plan: the operational plan with balances and monitoring.
• What-if: an editable alternative that does not replace Home.