TBM
Tax Bracket MatrixBy R.W. Douglas
Assumed Planning Inputs
Additional NQ positionsPositions 3–5 · optional
Household profile
Payroll & deductions$0 pre-tax applied
Applied$35,500
HSA contributionsFamily · $10,750 limit
$10,750 HSA room remaining
Additional InputsWithholding and planning details
Tax already withheld0% Fed. · 0% CO
Est. Fed. / year$0
W-2 estimate uses 2026 IRS annual percentage-method tables with only W-4 Steps 1 and 5 completed.
Planning inputs 2Readiness, additional income & review

Transaction readiness

! Prior-year tax missing; 90% current-year method shown✓ No IRA basis entered✓ No IRMAA appeal event flagged
Federal safe-harbor still needed
$29,489Target $29,489 · next date Sep 15, 2026
CO projected payment
$9,221After entered withholding and estimates
IRMAA timing
2026 → 2028$23,000 MAGI room to IRMAA 2
IRA tax character
100% taxable$0 entered basis · $0 QCD
Additional income detailsSplit investment income and add less-common items
Other income
State / Local Refund (taxable)
$
Tax-exempt Interest
$
Excluded from federal tax; included in IRMAA MAGI
Investment-income split
Interest / Nonqualified Dividends
$
Short-Term Capital Gains
$
Qualified Dividends
$
Long-Term Capital Gains
$
Additional Qualified Dividends
$
Capital-gain Distributions
$
Payment, IRA basis & IRMAA reviewOptional planning guardrails
Modeled IRA taxable percentage 100%Next estimated-payment date Sep 15, 2026IRA basis uses the entered balance as a planning approximation; verify all Traditional, SEP and SIMPLE IRA balances and Form 8606. QCD applies only to the entered IRA/RMD income.
Planning input keyDefinitions and modeling notes
Ages & Medicare
Ages are shared with Roth planning. IRMAA exposure begins at age 63 for Medicare’s usual two-year lookback.
Income entries
Social Security is entered gross and its taxable portion is calculated. Enter W2 income before the optional pre-tax payroll deductions.
Investment totals
The compact fields combine income with similar rates. Use Additional income details to split capital gains from dividends when a capital-loss carryforward applies.
Deductions
The standard deduction is used by default. Select itemized deductions to replace it with the expected Schedule A amount; any eligible enhanced senior deduction is added in either mode.
Capital gains
Qualified dividends, distributions, realized LTCG, carryforward losses, rent, and taxable state/local refunds feed the applicable tax outputs.
Withholding
Percentage withholding applies to Social Security, IRA/pension, taxable earned income, and modeled IRA cash withdrawals—not Roth conversions, capital gains, or rent.
NQ positions
Position value limits the sale; unrealized gain determines its embedded-gain percentage. Expand Positions 2–5 only when needed.
IRA balance
The shared IRA/401(k) balance feeds Roth planning and caps the combined IRA cash withdrawal and Roth conversion.
Proposed options
NQ and IRA fund the cash need from one account type. NQ + Roth pairs an NQ sale with a conversion; IRA + Roth pairs an IRA cash withdrawal with a separate conversion.
Age-55 exception
Select only for an eligible employer-plan cash distribution after qualifying separation. It does not apply to IRAs or Roth conversions.
Annual gross income sources
Annual Gross Income: $140,000
Social Security (Gross)
$
Taxable portion is calculated
Interest / Nonqualified Dividends / Short-Term Capital Gains
$
Ordinary rates · included in NIIT
IRA / 401(k) / Pension / RMDs
$
Long-Term Capital Gains / Qualified Dividends
$
Preferential federal rates
W-2 / Earned Income
$
$0 annual 401(k) applied
Rent, royalties & other incomeOptional taxable income sources
Net Rental / Passive Income
$
Royalties
$
Modeled as ordinary passive income and included in NIIT
Other Taxable Ordinary Income
$
Action Inputs(Spending Need - Roth Conversion)
NQ position
Additional room from
Tax room only—not confirmation of available cash to pay tax or spending.
Med / IRMAA 1$87,000Additional Roth conversion · $218,000 AGI
Med / IRMAA 2$143,000Additional Roth conversion · $274,000 AGI
Med / IRMAA 3$211,000Additional Roth conversion · $342,000 AGI
Med / IRMAA 4$279,000Additional Roth conversion · $410,000 AGI
Med / IRMAA 5$619,000Additional Roth conversion · $750,000 AGI
Charitable giving $0 applied · current-year action
Uses cash held outside these account balances. Selling NQ or drawing IRA to raise gift cash is not assumed.
Gift applied $0QCD excluded from entered IRA income $0Federal deduction used Standard · $41,440Gift itemized allowance $0Potential 5-year carryforward $0
Gift assumptions & tax rules

One gift method per option; Current excludes this new action, Proposed and Gross-up include it. Existing itemized deductions must exclude this new gift. Cash/stock gifts do not reduce AGI, NIIT MAGI or IRMAA MAGI. The model chooses the larger of available itemized deductions or standard deduction plus the eligible non-itemizer cash deduction. Public-charity cash gifts use a 60% AGI limit; long-term appreciated securities use 30%, with the 2026 0.5% AGI floor and high-income itemized deduction limitation. The non-itemizer cash allowance is up to $1,000 ($2,000 joint). Carryforward is an estimate for review, not automatically used in future years. No prior charitable carryforwards, special property, foreign-income adjustments or state-specific charitable credits are modeled; state uses the existing federal-taxable-income planning approximation.

QCDs are limited to $111,000 per eligible owner in 2026, reduced for prior QCDs and applicable post-70½ deductible-IRA offsets. QCDs are excluded, never also itemized. Only the portion redirecting already-entered taxable IRA income lowers AGI; an additional direct charitable IRA distribution does not create a second income reduction. Gifts are capped by available eligible assets before withdrawal/conversion funding. Amounts blocked by caps are not treated as funded gifts. NQ transfers are not sales and create no capital-gain income. Cash gifts are from outside the modeled accounts. These current-year gifts affect scenario and linked bracket-map taxes; the separate 20-year illustration does not model these gifts or charitable carryforwards.

IRS 2026 deductions · IRS charitable gifts · IRS QCD rules

Option 1 Comparison

Ordinary Income (before deductions)LTCG (before deductions)Tax withheldTax due
12% Starts (Taxable Income)$24,80015% LTCG starts$98,90022% Starts (Taxable Income)$100,80024% Starts (Taxable Income)$211,400IRMAA 1 - MAGI$218,000$7,166yrRoth phase-out starts$242,000 MAGINIIT 3.8%$250,000Roth contrib. cutoff$252,000 MAGIIRMAA 2 - MAGI$274,000$10,639yrIRMAA 3 - MAGI$342,000$14,110yr32% Starts (Taxable Income)$403,550IRMAA 4 - MAGI$410,000$17,580yr
$20,000LTCG (before deductions)
$111,000Ordinary Income (before deductions)
8.24%
$10,798Total Tax
$10,798
CurrentTax
$40,000LTCG (before deductions)
$211,000Ordinary Income (before deductions)
16.73%
$41,986Total Tax
$41,986
ProposedTax

Roth contribution limits use Roth IRA MAGI, which generally excludes conversion income—not the plotted AGI. Compensation and other IRA contributions also affect eligibility.

Option 1 Scenario Outcomes
1
ScenarioCurrent
AGI (before deductions)$140,000
Total AGI$131,000
Total Tax Increase (w/IRMAA)Baseline
Total tax owed / eff. rate (AGI)$10,798 / 8.24%
Total Eff. Rate % with IRMAA8.24%
Total Fed. Tax / eff. rate (AGI)$7,124 / 5.44%
Total CO Tax / eff. rate (AGI)$3,674 / 2.80%
Payroll FICA & All-in tax burden$0 / $10,798
Total Fed. tax on LTCG, NIIT & rent$708 / 3.54% (NIIT $0)
Total CO LTCG + rent / eff. rate$1,140 / 5.70%
Fed. safe-harbor still needed$6,412 · by Sep 15, 2026
Medicare IRMAA outcome$4,870/yr
Taxable Soc. Sec. included$51,000
Total Income tax / eff. rate$9,918 / 15.62%
Total LTCG tax / eff. rate$880 / 4.40%
Total Fed. LTCG (+NIIT) / eff. rate$0 / 0.00%
Fed. NIIT (3.8%)$0 / 0.00%
CO LTCG tax / eff. rate$880 / 4.40%
Fed. tax withheld / prepaid$0
CO tax withheld / prepaid$0
Federal safe-harbor target$6,412
CO projected payment remaining$3,674
Remaining tax balance due$10,798
2
ScenarioProposed
AGI (before deductions)$260,000
Total AGI$251,000
Gross withdrawal$50,000
Net cash$18,812
Total Tax Increase (w/IRMAA)$33,485 vs Current / 17.64%
Total tax owed / eff. rate (AGI)$41,986 / 16.73%
Total Eff. Rate % with IRMAA17.64%
Total Fed. Tax / eff. rate (AGI)$32,765 / 13.05%
Total CO Tax / eff. rate (AGI)$9,221 / 3.67%
Payroll FICA & All-in tax burden$0 / $41,986
Total Fed. tax on LTCG, NIIT & rent$6,566 / 16.42% (NIIT $38)
Total CO LTCG + rent / eff. rate$1,866 / 4.66%
Fed. safe-harbor still needed$29,489 · by Sep 15, 2026
Medicare IRMAA outcome$7,166/yr
Taxable Soc. Sec. included$51,000
Total Income tax / eff. rate$34,188 / 20.16%
Total LTCG tax / eff. rate$7,798 / 19.50%
Total Fed. LTCG (+NIIT) / eff. rate$6,038 / 15.10%
Fed. NIIT (3.8%)$38 / 0.10%
CO LTCG tax / eff. rate$1,760 / 4.40%
Fed. tax withheld / prepaid$0
CO tax withheld / prepaid$0
Federal safe-harbor target$29,489
CO projected payment remaining$9,221
Remaining tax balance due$41,986

Option 1 Broader Bracket Map View

AGI change +$120,000Tax change +$31,188
Fixed $800,000 filing-status scale · AGI lines move while the full bracket view stays in place
Ordinary bracketsTaxable income
10% · $0+
12% · $24,800+
22% · $100,800+
24% · $211,400+
32% · $403,550+
35% · $512,450+
37% · $768,700+
Current AGI: $131,000
Proposed AGI: $251,000
LTCG + NIITPreferential income
0% LTCG · $0+
15% LTCG · $98,900+
20% LTCG · $613,700+
NIIT 3.8% · $250,000
Current tax owed: $10,798 | E.rate 8.2%
Total Tax: $41,986 | E.rate 16.7%
Medicare / IRMAAMAGI thresholds
IRMAA 0 · $0+ · $2,435/yr ea.
IRMAA 1 · $218,000+ · $3,583/yr ea.
IRMAA 2 · $274,000+ · $5,320/yr ea.
IRMAA 3 · $342,000+ · $7,055/yr ea.
IRMAA 4 · $410,000+ · $8,790/yr ea.
IRMAA 5 · $750,000+ · $9,371/yr ea.
Total annual IRMAA premium: $4,870
Premium increase over current: $2,297
Selected strategy NQ + RothWithdrawal Amount $50,000Roth conversion $100,000Proposed taxable income $209,560
Tax Bracket Map
Option 2 Planning Inputs
NQ position
Additional Gross-Up Withdrawal Needed
$0
Additional room from
Tax room only—not confirmation of available cash to pay tax or spending.
Med / IRMAA 1$87,000Additional Roth conversion · $218,000 AGI
Med / IRMAA 2$143,000Additional Roth conversion · $274,000 AGI
Med / IRMAA 3$211,000Additional Roth conversion · $342,000 AGI
Med / IRMAA 4$279,000Additional Roth conversion · $410,000 AGI
Med / IRMAA 5$619,000Additional Roth conversion · $750,000 AGI
Charitable giving $0 applied · current-year action
Uses cash held outside these account balances. Selling NQ or drawing IRA to raise gift cash is not assumed.
Gift applied $0QCD excluded from entered IRA income $0Federal deduction used Standard · $47,500Gift itemized allowance $0Potential 5-year carryforward $0
Gift assumptions & tax rules

One gift method per option; Current excludes this new action, Proposed and Gross-up include it. Existing itemized deductions must exclude this new gift. Cash/stock gifts do not reduce AGI, NIIT MAGI or IRMAA MAGI. The model chooses the larger of available itemized deductions or standard deduction plus the eligible non-itemizer cash deduction. Public-charity cash gifts use a 60% AGI limit; long-term appreciated securities use 30%, with the 2026 0.5% AGI floor and high-income itemized deduction limitation. The non-itemizer cash allowance is up to $1,000 ($2,000 joint). Carryforward is an estimate for review, not automatically used in future years. No prior charitable carryforwards, special property, foreign-income adjustments or state-specific charitable credits are modeled; state uses the existing federal-taxable-income planning approximation.

QCDs are limited to $111,000 per eligible owner in 2026, reduced for prior QCDs and applicable post-70½ deductible-IRA offsets. QCDs are excluded, never also itemized. Only the portion redirecting already-entered taxable IRA income lowers AGI; an additional direct charitable IRA distribution does not create a second income reduction. Gifts are capped by available eligible assets before withdrawal/conversion funding. Amounts blocked by caps are not treated as funded gifts. NQ transfers are not sales and create no capital-gain income. Cash gifts are from outside the modeled accounts. These current-year gifts affect scenario and linked bracket-map taxes; the separate 20-year illustration does not model these gifts or charitable carryforwards.

IRS 2026 deductions · IRS charitable gifts · IRS QCD rules

Option 2 Comparison

Ordinary Income (before deductions)LTCG (before deductions)Tax withheldTax due
12% Starts (Taxable Income)$24,80015% LTCG starts$98,90022% Starts (Taxable Income)$100,80024% Starts (Taxable Income)$211,400IRMAA 1 - MAGI$218,000$7,166yrNIIT 3.8%$250,000IRMAA 2 - MAGI$274,000$10,639yrIRMAA 3 - MAGI$342,000$14,110yr32% Starts (Taxable Income)$403,550IRMAA 4 - MAGI$410,000$17,580yr
$20,000LTCG (before deductions)
$111,000Ordinary Income (before deductions)
8.24%
$10,798Total Tax
$10,798
CurrentTax
$20,000LTCG (before deductions)
$111,000Ordinary Income (before deductions)
8.24%
$10,798Total Tax
$10,798
ProposedTax
Option 2 Scenario Outcomes
1
ScenarioCurrent
AGI (before deductions)$140,000
Total AGI$131,000
Total Tax Increase (w/IRMAA)Baseline
Total tax owed / eff. rate (AGI)$10,798 / 8.24%
Total Eff. Rate % with IRMAA8.24%
Total Fed. Tax / eff. rate (AGI)$7,124 / 5.44%
Total CO Tax / eff. rate (AGI)$3,674 / 2.80%
Payroll FICA & All-in tax burden$0 / $10,798
Total Fed. tax on LTCG, NIIT & rent$708 / 3.54% (NIIT $0)
Total CO LTCG + rent / eff. rate$1,140 / 5.70%
Fed. safe-harbor still needed$6,412 · by Sep 15, 2026
Medicare IRMAA outcome$4,870/yr
Total Federal Taxable Income$83,500
Taxable ordinary income after deductions$63,500
LTCG + qualified dividends after deductions$20,000
Taxable Soc. Sec. included$51,000
Total Income tax / eff. rate$9,918 / 15.62%
Total LTCG tax / eff. rate$880 / 4.40%
Fed. LTCG tax / eff. rate$0 / 0.00%
Fed. NIIT (3.8%)$0 / 0.00%
Total Fed. LTCG (+NIIT) / eff. rate$0 / 0.00%
CO LTCG tax / eff. rate$880 / 4.40%
Fed. tax withheld / prepaid$0
CO tax withheld / prepaid$0
Federal safe-harbor target$6,412
CO projected payment remaining$3,674
Remaining tax balance due$10,798
2
ScenarioProposed
AGI (before deductions)$140,000
Total AGI$131,000
Gross withdrawal$0
Net cash$0
Total Tax Increase (w/IRMAA)$0 vs Current / 8.24%
Total tax owed / eff. rate (AGI)$10,798 / 8.24%
Total Eff. Rate % with IRMAA8.24%
Total Fed. Tax / eff. rate (AGI)$7,124 / 5.44%
Total CO Tax / eff. rate (AGI)$3,674 / 2.80%
Payroll FICA & All-in tax burden$0 / $10,798
Total Fed. tax on LTCG, NIIT & rent$708 / 3.54% (NIIT $0)
Total CO LTCG + rent / eff. rate$1,140 / 5.70%
Fed. safe-harbor still needed$6,412 · by Sep 15, 2026
Medicare IRMAA outcome$4,870/yr
Total Federal Taxable Income$83,500
Taxable ordinary income after deductions$63,500
LTCG + qualified dividends after deductions$20,000
Taxable Soc. Sec. included$51,000
Total Income tax / eff. rate$9,918 / 15.62%
Total LTCG tax / eff. rate$880 / 4.40%
Fed. LTCG tax / eff. rate$0 / 0.00%
Fed. NIIT (3.8%)$0 / 0.00%
Total Fed. LTCG (+NIIT) / eff. rate$0 / 0.00%
CO LTCG tax / eff. rate$880 / 4.40%
Fed. tax withheld / prepaid$0
CO tax withheld / prepaid$0
Federal safe-harbor target$6,412
CO projected payment remaining$3,674
Remaining tax balance due$10,798

Option 2 Scenario Details

$0 net · NQ + Roth

Option 2 Broader Bracket Map View

AGI change +$0Tax change +$0
Fixed $800,000 filing-status scale · AGI lines move while the full bracket view stays in place
Ordinary bracketsTaxable income
10% · $0+
12% · $24,800+
22% · $100,800+
24% · $211,400+
32% · $403,550+
35% · $512,450+
37% · $768,700+
Current AGI: $131,000
Proposed AGI: $131,000
LTCG + NIITPreferential income
0% LTCG · $0+
15% LTCG · $98,900+
20% LTCG · $613,700+
NIIT 3.8% · $250,000
Current tax owed: $10,798 | E.rate 8.2%
Total Tax: $10,798 | E.rate 8.2%
Medicare / IRMAAMAGI thresholds
IRMAA 0 · $0+ · $2,435/yr ea.
IRMAA 1 · $218,000+ · $3,583/yr ea.
IRMAA 2 · $274,000+ · $5,320/yr ea.
IRMAA 3 · $342,000+ · $7,055/yr ea.
IRMAA 4 · $410,000+ · $8,790/yr ea.
IRMAA 5 · $750,000+ · $9,371/yr ea.
Total annual IRMAA premium: $4,870
Premium increase over current: $0
Selected strategy NQ + RothWithdrawal Amount $0Roth conversion $0Proposed taxable income $83,500
Planning estimate only. Results are intended to narrow planning alternatives for review with a qualified CPA or tax advisor. No client information is saved.