□ Net Wealth = Roth (tax-free) + Taxable×(1−LTCG×gain%) + Traditional×(1−blended forward rate). Blended forward rate: the weighted average tax rate on all Traditional draws from each year forward — accounts for RMD trajectory, bracket changes, and the widow trap. Example: if $3M Traditional will be drawn over 20 yrs at average 27%, it's valued at 73¢ per dollar today. Roth conversions increase net wealth when conversion rate < blended forward rate; they're neutral when equal. The red shading is the embedded tax liability.
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RETIREMENT PLANNER — V342
Test Cases
1
Step 1 — Basic Info
Marital Status
Chart Range
Economic
Inflation rate3.0%
Stocks / Bonds60% / 40%
Exp. Return
8.9%
Bad Year (5th %ile)
−18%
Volatility
11%
Medicare Part B
Elect Medicare Part B?
No IRMAA surcharges
If Yes, IRMAA surcharges added to Medicare costs based on prior-year MAGI. Starts at age 65.
Spending
Annual spending$80,000
Spending after widowing100%
4% rule start age60
After-tax income vs spending drives surplus/shortfall. Shortfall: taxable → deferred → Roth.
One-Time Purchases
Job Income — Husband
Annual income$100,000
Job Income — Wife
Annual income$80,000
Pension — Husband
Annual pension$24,000
Start age65
Pension — Wife
Annual pension$18,000
Start age63
Social Security — Husband
Annual benefit$30,000
Start age67
Social Security — Wife
Annual benefit$24,000
Start age65
Life Events — Husband
Birth date
Age at death--
Pension survivor %50%
H Pension COLA %/yrCPI
Life Events — Wife
Birth date
Age at death--
Pension survivor %50%
W Pension COLA %/yrCPI
Account Balances Today
Traditional (pre-tax)$800K
Taxable$200K
Cost Basis $
Roth IRA$100K
2
Step 2 — Analysis
Tax Brackets (2026)
Tax brackets: taxable income · IRMAA: AGI · both rise with inflation
IRMAA
← Annual Income, Tax & Spending ($)
Asset Values ($) →
Analysis
□ Click to unfreeze
Hover over chart →
Hover a row above
Spending
Annual$80,000
Roth Conversion
Annual conversion$0
□ Conversions can continue past RMD age (75) — they stack on top of forced RMDs.
%
Rules of Thumb
Taxable account step-up basis — At death, your beneficiaries inherit the taxable account at its current market value with zero taxable gains. They only pay LTCG on growth after inheritance. This makes a large taxable account nearly as valuable as Roth for beneficiaries.
Roth conversion math — Converting $1 of Traditional to Roth costs you your current marginal rate (e.g. 24%) to save heirs their future rate (e.g. 24%). Break-even if rates are equal. Only clearly worth it if heirs will pay a higher rate than you pay today — or to protect your surviving spouse from the widow trap.
The Widow Trap — When the first spouse dies, the survivor files Single instead of MFJ. Standard deduction halves, brackets narrow, but RMDs continue growing. This often creates the highest tax years of the entire plan. Converting now (at MFJ rates) to reduce future RMDs is the strongest case for Roth conversions.
RMD Tax Torpedo — Required Minimum Distributions begin at age 75 and grow each year. A large Traditional account forces large taxable income even when you don't need the money. Converting before age 75 (while MFJ, before RMDs) is the optimal conversion window.
Conversion funding matters — If you pay conversion taxes from your taxable account, you are spending dollars that would have passed to beneficiaries nearly tax-free (step-up basis). Converting aggressively while draining a large taxable account often reduces family wealth despite lowering lifetime taxes.
SECURE Act 10-year rule — Non-spouse beneficiaries must empty inherited IRAs within 10 years. Roth IRAs inherited the same way but are tax-free. A large Traditional account forces heirs into potentially high tax brackets for 10 years — consider this when sizing how much to leave in Traditional vs Roth.
Optimal conversion window — The best time to convert is when your taxable income is temporarily low: after retirement but before Social Security starts, and before RMDs begin at 75. For MFJ filers, the 22% bracket top is ~$97K of taxable income; the 24% bracket extends to ~$207K.
Beneficiary Inheritance — 10-Year Drawdown
Balances from end of plan. IRA split equally, drawn over 10 yrs (SECURE Act). Taxable: step-up basis resets at inheritance.
Lifetime Tax Summary
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RMD Tax--
Conv. Tax--
Withdrawal Tax--
Total Taxes--
Asset Summary
Traditional
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Final Taxable
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Final Roth
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Total Assets
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Family Wealth
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Family Wealth
Family Wealth Today's $
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Deferred After Heir Tax
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Roth Conversion Optimizer
Calculating...
Additional Plotting Features
Chart Series
Assets
Job Income
Pension
Social Security
Summary