Congrats on a great app.

I have worked out that I get the best results (at least as measured by Liquid Legacy) when I specify "Withdraw all Distributions" from my Non-registered accounts.

But I can't really replicate this using any value of Automatic Withdrawls.

Is this due to different tax treatments of the two options? How are distributions (versus sales causing capital gains) treated during Automatic Withdrawls?

The TIME MACHINE calculates distributions every year and will tax them appropriately in non-registered accounts as interest, foreign dividends, and eligible dividends, given what it knows about your investments. The taxes will be calculated whether you withdraw the distribution from the account or not. 

Capital gains taxes will be calculated if you have additional sales of your investments, given their value and book value.

Automatic Withdrawals of given amounts may trigger additional sales and capital gains taxes. It would be hard to match the distributions exactly. I'm not sure why you would try, as it's easy to just withdraw the distributions as they come.

Check the detailed cash flow reports to see what is going on in terms of the withdrawals from the non-registered accounts and the taxes.

Sorry, I didn't phrase the question very well.

If I don't specify Withdraw all Distributions, but instead specify an Automatic Withdrawl will the Time Machine first reinvest the distributions, and then sell to cover the withdrawl?

Or will it reduce the Automatic Withdrawl amount by the distributions, and then sell to cover the balance?

While obviously both scenarios will incur taxes on the distributions, scenario one will incur more capital gains than scenario two.

Thanks for clarifying. You can specify if you want distributions reinvested or not for each investment. The TIME MACHINE grows the investment and calculates the distributions. Setting an AUTOMATIC Withdrawal of all Distributions will set all distributions to not be reinvested from the date you set for that, and all distributions go straight to the Wallet account. Otherwise, any distributions not set to be reinvested go to the Cash Investment, while any set to be reinvested are reinvested first (which increases their adjusted cost basis).

Setting an AUTOMATIC Withdrawal, the TIME MACHINE takes the money from the Cash investment of the account and puts it into the Wallet ACCOUNT. Then the account is rebalanced. If the amount in Cash is negative because the distributions were reinvested, the selling of investments may be required and might lead to a capital gain. It depends on the adjusted cost basis of the investments sold.

Just set it up for the TIME MACHINE as you would for real life. Will you reinvest the distributions? Will you withdraw the distributions?