Advisor Edition · Tax Year 2025

The Federal Tax Ledger

Roth Conversion Planner · IRMAA-Aware

How much should you convert?

The slider adds the conversion amount to taxable income, recomputes federal tax, and watches MAGI cross every IRMAA cliff in real time. Surfaces the marginal cost of the next dollar — including the often-overlooked Medicare surcharge.

Baseline filing: Married Filing Jointly · Baseline AGI: $0 · Baseline MAGI: $0
Proposed Roth Conversion
$0
$0$150,000$300,000
Fill to:
MAGI Ruler · IRMAA Cliffs (2025)
Baseline 0k
MAGI 0k
0% LTCG top
128k
15% LTCG top
632k
Tier 1
212k
Tier 2
266k
Tier 3
334k
Tier 4
400k
Tier 5
750k

LTCG markers are taxable-income thresholds plus the base standard deduction (a planning approximation, not exact for itemizers or the OBBBA senior bonus). Below the 0% line, qualified dividends and long-term gains are taxed at 0%.

Current tier: Standard
Baseline tier: Standard
Distance to next cliff: $212,000
Scenario Comparison
LineBaselineAfter ConversionΔ
Adjusted Gross Income$0$0
MAGI (for IRMAA)$0$0
Taxable income$0$0
Marginal ordinary rate0%0%
Federal income tax$0$0
IRMAA tierStandardStandard
Annual IRMAA surcharge$0$0
Multi-Year Total Cost of Conversion
Years IRMAA persists
Federal tax cost (one-time)
$0
Year of conversion
IRMAA cost × 2 years
$0
2-yr lookback typically applies
Total cost
$0

Reminder: 2025 IRMAA is set off the 2023 MAGI. A conversion done this year will affect IRMAA approximately two years from now, and typically for at least one full year. Adjust the persistence input to model planning horizon accordingly.

Section IV · Long-Horizon Projection

Thirty-Year Conversion Forecast

Drag the conversion slider above to set the annual conversion amount. The model below carries that amount forward, applies growth, takes Required Minimum Distributions starting at age 73, and tracks the dollars paid in tax as if they had been invested at the same return.

Pay Conversion Tax From:
Tax dollars come from a taxable account; the parallel comparison invests them at Opp. Cost Rate.
Ending Traditional
$5.09M
vs $5.09M no-conv.
Ending Roth
$0
Tax-free
Total Tax Paid
$138,841
Conversion + RMD tax
Strategy Advantage
$0
Conversion behind vs no-conv.
Balances Over Time
46495255586164677073Age$0$1.5M$3.0M$4.5M$6.0M
  • Traditional
  • Roth
  • Tax $ Reinvested
Year-by-Year LedgerClick to expand · 30 rows
YrAgeConv.Conv. TaxRMDRMD TaxEnd TradEnd RothTax-$ Inv.Total Wealth
146$1,060,000$0$0$1,060,000
247$1,123,600$0$0$1,123,600
348$1,191,016$0$0$1,191,016
449$1,262,477$0$0$1,262,477
550$1,338,226$0$0$1,338,226
651$1,418,519$0$0$1,418,519
752$1,503,630$0$0$1,503,630
853$1,593,848$0$0$1,593,848
954$1,689,479$0$0$1,689,479
1055$1,790,848$0$0$1,790,848
1156$1,898,299$0$0$1,898,299
1257$2,012,196$0$0$2,012,196
1358$2,132,928$0$0$2,132,928
1459$2,260,904$0$0$2,260,904
1560$2,396,558$0$0$2,396,558
1661$2,540,352$0$0$2,540,352
1762$2,692,773$0$0$2,692,773
1863$2,854,339$0$0$2,854,339
1964$3,025,600$0$0$3,025,600
2065$3,207,135$0$0$3,207,135
2166$3,399,564$0$0$3,399,564
2267$3,603,537$0$0$3,603,537
2368$3,819,750$0$0$3,819,750
2469$4,048,935$0$0$4,048,935
2570$4,291,871$0$0$4,291,871
2671$4,549,383$0$0$4,549,383
2772$4,822,346$0$0$4,822,346
2873rmd$181,975$43,674$4,918,793$0$146,599$5,065,392
2974rmd$192,894$46,295$5,009,453$0$310,791$5,320,244
3075rmd$203,636$48,873$5,094,166$0$493,487$5,587,653

Assumptions: federal marginal rate held constant at the rate set above (does not re-run the Tax Ledger each year). State tax and IRMAA are excluded here — both are surfaced separately in the panels above. RMDs begin at age 73 (SECURE 2.0) and use the IRS Uniform Lifetime Table; after-tax RMD proceeds are reinvested into the tax-cost portfolio so the comparison treats them as still working for the client. The "Strategy Advantage" KPI compares total ending wealth (all three buckets) against the same scenario with $0 conversions.