Premium Finance Roth Conversion Strategy Summary
| Premium | $4,000,000.00 |
| Premium Finance Roth Conversion Bonus | $0.00 |
| Beginning Value | $4,000,000.00 |
| Year 1 Planned Conversion | $280,155.00 |
| Year 1 IRA Withdrawal | $13,000.00 |
| Estimated Year 1 Taxes | $78,509.20 |
| Tax Funding Method | From Conversion Side |
| Pension Continuation at First Death | Multiple pensions modeled individually |
| Annual Fee Display | 0.95% annual (first 10 years) |
Transparent Assumptions
Desired annual income starts at $150,000.00 and increases by 2.5% annually. The redesigned engine now respects an advisor-entered IRA withdrawal of $0.00 through age 70 and a planned NQ withdrawal of $0.00 from age 67 through age 70 before it uses Desired Income as a gap-filler.
NQ withdrawals use the selected tax treatment and track remaining cost basis so only the taxable portion enters federal taxable income. Each pension is modeled separately with its own taxable amount, tax-free amount, owner, and survivor continuation.
Guaranteed FIA income, when enabled, is modeled separately from Roth withdrawals and begins in the entered strategy year. If the income tax treatment is set to Taxable / Non-Roth, that income is included in taxable income instead of tax-free income.
Widow Social Security switch modeling, when enabled, uses the widow benefit first and switches to the client's own benefit at the selected age. IRA percentage schedule modeling, when enabled, replaces the flat IRA withdrawal with the entered age-based percentages.
Premium defaults to $4,000,000.00. Bonus defaults to 0.0%, which creates a one-time bonus of $0.00. Beginning value therefore starts at $4,000,000.00 and compounds at a gross 6.0% annual rate, net of the displayed 0.95% annual (first 10 years) inside the Premium Finance Roth Conversion illustration.
Conversion completion mode is Tax bracket optimized. Conversion is constrained by the selected tax bracket and inflation-adjusted tax limits. When IRMAA-aware optimization is enabled, the engine can stretch the conversion period up to the entered maximum years and cap annual conversions to avoid or reduce Medicare IRMAA exposure when possible.
No death event is applied. If a death event is applied for an MFJ case, the model switches the survivor to Single filing status and carries forward the higher Social Security benefit. Client 2 spousal Social Security modeling is not active in this run.
The following calculations are made available as self-help tools for independent use. Thesauros Planning Group does not guarantee applicability to any individual circumstances. Thesauros Planning Group encourages you to seek personal guidance from qualified professionals regarding all personal finance issues. This analysis is based solely on the information you provide. The results presented by this calculator are hypothetical and for illustrative purposes, and do not represent the current or future performance of any specific financial product. No guarantees are made as to the accuracy of any projection. All financial products carry a degree of risk, and past performance is not a guarantee of future results. Generally, the greater the return, the greater the risk. This calculator does not reflect any possible taxes. It also does not reflect fees, expenses and charges that may be associated with a financial product holding the savings. Intellectual Property of Thesauros Planning Group LLC: Unauthorized duplication, distribution, or reproduction of this work in any form is strictly prohibited and will result in legal consequences.