Johnsson wrote: ↑Tue Jun 08, 2021 11:59 am
Probably. Try using https://www.i-orp.com/Plans/extended.html
Easy to use and trial many possibilities. It works to maximize spendable dollars and level out taxes.
To avoid bias, enter the same allocations for all 3 account types (even though your allocations are all different)
A dollar in a Roth is worth more than a dollar in the other accounts. I-orp'll likely spend down from taxable. If you convert the Roth should be all equity.
If the OP wants a quick study with just a a basic look at taxes, I-orp is fine, but if he is more of a numbers guy that doesn't mind getting the data and sorting through more complex programs, then the Retiree Portfolio Model spreadsheet available free on this site. RPM has more tax fidelity and allows you to set a value for your heirs tax rate and how many years to give them to withdraw it. If you set the tax rate at what you think it appropriate for your heirs average marginal taxes on the RMDs they will have to take and set the number of years to 1, it will tell you the total impact to your heirs as well, that's often larger than the impact to you.
The best tax package I've seen is in Pralana Gold ($99/1st year, $49 updates, requires Excel). The Pralana Gold tax package even includes a way to enter existing LTCG, loss carryovers, non-deductible contributions to t-IRAs. It handles things like AMT, deduction phaseouts, (plus obvious stuff like state taxes, NIIT, IRMAA, etc.) P-G has a Roth optimizer that I think got lost in my case as DW has some non-deductible contributions but could be a time saver for others.
Agree that you have to be sure the programs are not just snooping to increase returns by increasing stock allocation as that effect would mix with the true benefit/costs of Roth conversions and mask or reverse the answer. Keeping allocations in all accounts constant is the easiest way and in most programs the only way to get a look at the effect of Roth conversions. But OP has done the optimal thing and put bonds in his t-IRA so it won't grow much and the constant allocation approach will tend to overshoot the amount of conversions to do.
If OP really wants to study it and is willing to do the work, he can use the feature in P-G to manually change allocations (4 changes allowed) in each type of account over time, while keeping the overall allocation (which the program reports) on target. This requires starting your accounts at a little lower stock allocation than their current value and then allowing the stock percentage to rise for a few years and then reallocating in each account to bring the overall back below target and repeat for the next time period.
That is as close as I can find in the current crop of consumer tools to modeling what you really want to do. I haven't seen any other program allows that but it does take a lot of patience and fiddling. For my own case studies, the answer gave a broad, flat optimum amount of conversions. I could be a Texas sharpshooter and hit the barn almost anywhere and draw a bullseye around it and the answers were indistinguishable. P-G doesn't allow you to set you heir's tax rate on inherited IRA's but uses your average lifetime marginal tax rate on them to determine "effective $" in the estate.