Strategy Library

Strategy Library evaluates a client's uploaded tax return against a bank of pre-built tax-planning strategies, such as Roth IRA Conversions, Donor Advised Funds, and Tax-Loss Harvesting, and pre-populates each one with that client's actual return figures. Instead of building a Scenario Analysis scenario from a blank screen, users can review the strategies Holistiplan has already sized for this client and build a scenario from a selection of them.

To begin, click Strategy Library on the Returns & Transcripts tab of the client's Household screen.

The Strategy Library can also be accessed within the Scenario Analysis page when clicking Add A Scenario.

Strategies to Consider and Additional Strategies

Strategy Library opens as its own page, titled Strategy Library, separate from the Tax Report itself. The return's figures are evaluated against each strategy's eligibility rules, and results are grouped into two sections:

• Strategies to Consider — strategies that apply to this client's return based on the figures in the uploaded tax return.
• Additional Strategies — the remaining strategies in the library that did not trigger as relevant for this return, but can still be reviewed and applied manually.

All strategies can be sorted by category, confidence level, savings type, and estimated impact to help better choose the right one for the client.

• Category - Each strategy is given a broad category that it fits into for a high-level determination of what area it will affect. Examples include 'Gift & Estate' or 'Retirement'.
• Confidence Level - The confidence level is an approximation of the estimated impact of the strategy on the tax return. Depending on the information within the tax return, we can estimate the tax impact. With less information, we can still estimate, but within a greater margin of error. The more data we have within the return, the more confident we are for each strategy.
• Saving Type - The savings type is how the tax strategy will affect the client. A True Savings is a direct tax liability we can reduce by implementing the strategy. A Deferred Cost is a strategy that provides a benefit now but may incur higher costs in the future. A Deferred Savings is a strategy that has a current cost but provides a benefit in the future. Take note of the savings type when applying the strategy, as not everything will result in a one-to-one tax liability reduction.
• Estimated Impact - For each strategy, we take key values from the tax return and apply the strategy in isolation to generate a potential tax impact (cost or savings). Please note, the entire Holistiplan Tax Engine is not run on each strategy; it is only run when added to Scenario Analysis. As a result, the estimated impact may differ from total tax liability due to intricacies in tax brackets, QBI, etc.

Each Strategy also has a detailed explanation and a description of how each strategy is calculated for the given return. This can be found by clicking the calculator icon next to each value in the estimated impact section. This will open a new modal with more strategy information.

• Detailed Strategy Explanation - This is a very in-depth explanation of what the strategy does and how it works. There may be links for further reading, or it may suggest further actions within Holistiplan. It is best practice to read the detailed strategy explanation before applying a strategy to fully understand the scope of the strategy.
• How we Calculated This - This section provides an in-depth detail on how this is calculated in plain English.
• Required Inputs - This section will show the areas within the tax return that we read to perform calculations for the strategy. This allows users to make adjustments if needed.

Selecting Strategies

Each strategy can be added individually by clicking Select Strategy, which toggles to Strategy Selected once added. Multiple strategies can be selected at once — there's no need to build and review one scenario at a time. A running counter at the top of the page shows how many strategies are selected out of the total available ("X of Y strategies selected").

Clicking View Report will create a printable, ready-to-print PDF of all the tax strategies selected, along with their description and estimated impact.

Generating a Scenario

Once one or more strategies are selected, clicking Generate Scenario opens a Name New Scenario dialog with two fields:

• Scenario Name
• Tax Year

Submitting the dialog creates a new Scenario Analysis scenario with the selected strategies' figures already entered as inputs, mapped to the correct fields — no manual re-entry required. The new scenario is created from the household's existing tax return and counts toward the household's scenario limit like any other scenario.

Any pre-filled value in the resulting scenario can be adjusted afterward the same way as in a manually built scenario!