Using the graph

20-year illustration · the Annual return field applies to NQ, Traditional IRA and Roth IRA

Hover over a year to see all four balances. Tap a year on touch screens, or use Tab to focus year markers.

Spending, conversions & taxes

Balances come from the Estimator; NQ combines all positions. At the start of each year, the targeted gross IRA distribution is capped at the IRA balance. NQ sales first fund its incremental federal, estimated state and NIIT tax, including tax on those sales; any uncovered tax is withheld from the distribution and the net reaches Roth. Remaining accounts then receive the selected annual growth. Annual spending is taken at year end: NQ first (including capital-gains tax on sales), then qualified Roth funds, then an additional taxable IRA withdrawal grossed up for its incremental tax if needed. NQ basis is tracked from the Estimator unrealized gains; growth adds unrealized gains and proportional basis is removed with sales. Spending defaults to $70,000, stays level and is additional portfolio spending, not reduced by Social Security or other income. Both conversion and no-conversion paths use the same spending order and timing; any remaining unfunded spending is shown. Assumes everyone is at least 59½ and Roth withdrawals are qualified, including the five-year rule. This is a simplified end-of-year spending illustration: full-year growth on net conversions, no RMDs, baseline income-tax payments, baseline-income funding, Medicare deductions from assets, fees, annual NQ tax drag, inflation or changing law. Income sliders stay constant even after IRA depletion. Medicare premiums are separate; their lookback includes modeled NQ gains and extra IRA withdrawals. Returns are hypothetical, not guaranteed; IRA balances are before future withdrawal taxes. Roth distribution rules

Medicare premiums

Total Eff. Rate with IRMAA is a planning comparison: (current-year federal/state income tax + one future year of Medicare premium change versus Current) ÷ scenario AGI. It includes premium increases or reductions, not the baseline premium, and excludes payroll tax. Uses fixed 2026 premium assumptions, without discounting the future change; it does not change tax owed, withdrawal funding, or the 20-year graph. IRMAA generally uses income from two years earlier. SSA lookback guidance

All 20 years assume Medicare coverage. Includes Part B + Part D IRMAA only; excludes drug-plan premiums, Medigap and other coverage. Uses fixed 2026 premiums and thresholds, with a two-year income lookback; the first two years use current income. Conversion years 19–20 affect premiums beyond this illustration. Other income stays constant even after the IRA is depleted. Premiums are shown separately, not deducted from account balances.

Red-box annual totals = full Part B premium + Part D IRMAA surcharge, excluding the separate drug-plan premium. Joint assumes two enrollees; other filing statuses assume one.

20-year tax comparison

Tax differences compare the conversion path minus the no-conversion path: + means more estimated tax; − means less. With / Without totals use the same 20-year horizon. Taxes paid are modeled portfolio taxes actually funded, including conversion and spending-related taxes; baseline income tax, Medicare and unfunded taxes are excluded. Estimated remaining IRA tax equals the year-20 Traditional IRA balance multiplied by the editable future federal + state tax rate. This is an estimated future liability, not tax currently owed. Combined estimated tax adds taxes paid and remaining IRA tax, using nominal amounts rather than present values. Qualified Roth withdrawals and NQ inherited with a full basis step-up are assumed income-tax-free; no estate tax is modeled. Account values shown above are before this estimated future IRA tax. Spending funded and any shortfall remain available in Conversion & spending and the annual detail table.

Account inheritance

*Income-tax-free to heirs: of these modeled accounts, assuming death at year 20, a full inherited NQ basis adjustment and qualified Roth distributions (five-year rule met). This is not an estate-tax exemption. Later NQ gains or income may be taxable; reaching year 20 alone does not reset basis. IRS guidance

Reading the bracket map

The black line is AGI; the dashed green marker is taxable ordinary income after the selected deduction. Ordinary brackets and stacked LTCG rates use taxable income. IRMAA and NIIT use MAGI, assumed equal to AGI here. The non-linear focus scale gives lower income ranges more space and gradually compresses higher ranges; vertical distances are not equal dollar increments. At an exact ceiling the next ordinary bracket is not yet engaged; IRMAA applies above its threshold.

Simplified illustration: AGI = ordinary income + net LTCG/qualified dividends + taxable Social Security. Gross SS is not added in full. The three inputs are independent; LTCG is no longer capped by the AGI entry. Typing AGI or dragging the black line adjusts ordinary income, keeping SS and LTCG fixed; AGI cannot fall below their combined contribution. Sliders start with $200,000 SS and $2 million ordinary/LTCG ranges; typing larger dollar amounts expands the range and chart. Effective rate = (regular federal ordinary + LTCG tax + estimated state tax + NIIT) ÷ AGI. NIIT remains limited to investment income; conversion income can increase MAGI and trigger NIIT on existing gains. State estimate applies the selected planning rate to federal taxable ordinary income + taxable LTCG, assuming the same deduction. This is not a state-specific tax return: state exclusions, deductions, credits, progressive brackets and preferential capital-gain rules may differ. No tax-exempt interest, credits, age-related deductions, itemized limits, AMT, payroll tax, or special capital-gain rates. IRMAA figures are the 2026 reference, not a forecast of future premiums. The downloaded PDF remains static. IRS 2026 tax tables · Social Security tax rules.