Would like to model Roth conversions up to tax brackets. Example would be to do a Roth conversion only if I have a gap at the 12-15% tax bracket....or 22-25%.
Adding on to this would be some version of real-time display of the impacts like being able to see the Tax Analysis: Taxes chart.
That’s one of the challenges of the current conversion modality, not being able to see immediate detailed tax changes (aka each year) while making changes.
Is this not a dupe of one of the planned Optimizer features? Voting for both just in case. ;)
I agree this might be somewhat of a duplicate of the Optimizers item, though perhaps much easier to implement than true optimization. Either way, it is definitely on my wish list.
Agreed. This is an immediate and very useful subset of the other feature request.
In addition to converting to a tax bracket, it would also be very helpful to know room to convert to IRMAA and LTCG thresholds. IRMAA thresholds are just under the top of some brackets, and can result in a huge marginal tax hit if you don’t keep them in mind.
I’d like to be able to see a scenario where doing a Roth conversion isn’t eliminating all my IRA RMDs, but capping my RMDs value so that all my income is under a certain tax bracket or capping to a preferred dollar level.
Is there a scenario where doing the Roth conversion says I’m still taking RMDs, just not at the shockingly high value, and keeps my taxation controllable?
Start year, end year, max tax bracket, max LTCG bracket, and max IRMAA bracket are the necessary tools for easily specifying Roth conversions.
This is different from the Optimizer feature. With an Optimizer feature you have to take it or leave it. It’s better to have the “knobs” to optimize it yourself to your own preferences.
I went down a rabbit hole on my own spreadsheet with that. started wtih fill to XX% bracket, but only if I can pay the tax from brokerage, oh and what about NIIT, because you can’t fill 24% without it, or maybe you should stop at ACA limit, or IIRMA limit, or…
I ended up with 8 traditional accounts (between my wife and I) and it was such a huge pain setting the conversion per account. Even if it just let me specify a global converstion (instead of per account) it would be so much easier then it is now. Though having everything above would also be amazing.
Similar, I have 7 accounts between me and my wife. Modeling tax efficient drawdown / conversion strategies was the primary feature I was interested in from PL.
Would be very helpful to have the ability to specify which Roth account the converted funds are transfer into. I have many different Roth accounts and the system dumped it all into the same one which is not invested in the same assets or have the same returns as the one I wanted it to to go into.
This would be great. Just suggested this on another “suggestion” for Roth conversions. That was more of an optimization request.