Advanced Tax Planning Dashboard

Tax Rules Applied:

• Standard Deduction:
• Brackets: Progressive federal income tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%)
• Capital Gains: 0%, 15%, or 20% based on income level

Account Tax Treatment:

• Traditional 401k/IRA: Withdrawals fully taxed as ordinary income
• Roth IRA: Qualified withdrawals 100% tax-free
• Brokerage: 50% basis (not taxed), 45% LT gains (preferential rates), 5% qualified dividends (preferential rates)

Optimization Strategy:

• Auto-optimize fills lower tax brackets with Traditional withdrawals first
• Then uses Brokerage to benefit from capital gains rates
• Finally uses Roth to avoid higher brackets
• State taxes applied uniformly to taxable income

Important Limitations:

Using the Sliders:

1. Set your account balances to match your current retirement savings
2. Adjust annual withdrawals to see how different withdrawal strategies affect your taxes
3. Choose your filing status and optionally add state taxes
4. Watch the results update in real-time as you make changes

Auto-Optimize Feature:

Enter your desired annual spending and click "Auto-Optimize" to see the most tax-efficient way to structure your withdrawals. The tool will:

• Fill lower tax brackets with Traditional withdrawals (taxed as ordinary income)
• Use Brokerage withdrawals next (benefit from capital gains rates)
• Finish with Roth withdrawals (tax-free) to avoid higher brackets

Advanced Features:

• RMD Analysis: See when required minimum distributions begin and plan accordingly
• 30-Year Projection: Visualize how your strategy affects lifetime taxes
• Roth Conversion: Evaluate whether converting Traditional to Roth makes sense

Tips for Success:

1. Start by entering realistic account balances and desired spending
2. Experiment with different withdrawal combinations
3. Pay attention to marginal tax bracket changes
4. Consider RMDs if you're approaching age 73
5. Explore Roth conversions during low-income years