A simplified illustration
The model compares two hypothetical paths using the same selected starting balance, growth rate, tax rate, and ending age. It is designed to make a planning conversation easier to understand, not to calculate an individual's tax return.
Tax assumptions
In simple mode, the selected effective tax rate is applied consistently. The optional 2026 bracket-aware check estimates current federal income tax by stacking a full taxable conversion on top of taxable ordinary income before conversion and can add a user-selected state tax rate. It still does not calculate a complete tax return, Social Security taxation, deductions, credits, capital gains, net investment income tax, IRA basis, charitable strategies, estate tax, penalties, or every retirement-income source. Those factors can materially increase or reduce the modeled advantage.
Medicare timing
The optional Medicare check uses the published 2026 Part B and Part D IRMAA surcharge schedule as a current-dollar warning. Medicare generally uses tax information from two years earlier, so a 2026 conversion would generally affect the 2028 premium determination. Because 2028 thresholds and premiums are not yet published, the estimate is shown separately and is not included in the ending balances. Appeals and life-changing-event rules are not modeled.
Investment assumptions
The chosen growth rate is constant and does not predict returns. Market volatility, product expenses, advisory fees, distributions, contributions, and the source used to pay taxes can materially change results.
RMD assumptions
The illustration uses the rule set identified on the methodology page and in the report. Actual required minimum distributions depend on current law and individual circumstances. Rules and tax rates can change.
Professional review
Consult qualified tax, legal, investment, and insurance professionals before taking action. Advisors and firms are responsible for their own supervisory, recordkeeping, advertising, and compliance requirements.