Suggestions

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RMDs vs Expenses view

I would like a view that would show RMDs vs expense needs. The thought behind this is as I am trying to optimize Roth conversion amounts, I want to see how that impacts RMDs vs my expense needs - my thinking here is that I dont want to “over-convert” IRA to Roth if I am going to need to pull from my IRA to cover my expenses anyway. So lets say I need 100k to cover expenses in a given year, and my Roth conversions results in 60k in RMDs, then I would likely need to draw another 40k from the IRA to cover my expense, and therefore maybe I was too aggressive in Roth conversions - in that case I would probably want to dial back the Roth conversions so that I could balance it to the resulting RMDs just cover my expense needs. If this view could happen within a “sandbox” tool that allowed. easy modeling of Roth conversion amounts and immediatly see the impact on RMDs vs expenses, that would be great. Hope that all makes sense…

2 votes

Tagged as Suggestion

Suggested 24 August by user Dan Matthews

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  • 24 August Dan Matthews suggested this task

  • 27 August Shawn Sansom edited this task

  • avatar
    Shawn Sansom

    I think you can get this, at least somewhat with the custom plotting system for this. But perhaps we’d need to track total RMDs to make this perfect.

    Plan -> New custom plot

    Add Expenses (summed) Total Inflows (un summed) Chart Options -> Data Sets -> - deselect everything except expenses and RMDs

    27 August

  • 27 August Shawn Sansom approved this task

  • avatar
    Mike Bendtsen

    Adding to this thought … would like to see the scenario where I’m converting as much as needed so that none of my RMDs push me into an X% tax bracket. How much do I need to convert to never have any of my RMD’s push me over a 10%, 12/15%, 22%, etc. tax bracket.

    I’m struggling to model out for comparison on what Dan is going after as well … curious to know if my plan/model is “over-converting”. I need $ to cover my expenses during my RMD years, but left unconverted my RMD value ends up being way more than I need, and pushes me into some very high tax brackets.

    Seems like there is a middle ground between not converting anything and converting everything … so wanting PL to help get me to that modeling view for comparison analysis.

    03 September