ROTH Conversion is a term for the process of shifting money from a pre-tax tax-deferred account to a post-tax tax-deferred account. PlannerPlus members can model ROTH Conversion transactions in the tool.
Look for conversion opportunities.
Use the Insights > Tax charts to look for tax planning opportunities. The bottom graph on the page shows projections for how tax brackets are filled over time. If there are years that show gaps in tax liabilities, you may have a planning window.
First, go to My Plan > Savings and Assets to add transactions. You can enter conversions for yourself or your spouse.
Click on "Add another Roth Conversion"
Select the Account the conversion is coming from
Enter the amount
Enter the conversion age of the account owner
Enter an optimistic and pessimistic rate of return for the destination account
Repeat steps 1-5 to add additional transactions.
Watch the chart on the right of the page update in real-time.
Under "Your Updates," click on "Taxes" to see tax liability projections.
Notice how the Estimated Lifetime Income Tax changes with each transaction
Notice how the columns on the chart change with each transaction
Analyze The Impact
Use the Insights > Tax charts to see how tax projections have changed.
Use the Insights > Savings charts to view ROTH Conversion Withdrawals and RMD withdrawals.