Pre-RMD Couple
63, single — large IRA, convert before RMDs
Each modeled outcome is a synthetic side-by-side: a simplified baseline path versus tax-aware strategies that consider Roth conversions, RMD timing, and how income streams stack in brackets. For deeper reading, see Social Security and the RMD tax collision, how we frame Social Security analysis, and the Praxion user guide.
- No Roth conversions
- Static withdrawal order
- RMD spike at 73
- SS at 67
- Roth conversions 60–72
- Bracket-managed income
- RMD smoothing
- SS optimized timing
| Projected Lifetime Outcomes | ||
|---|---|---|
| Default Path | Praxion Plan | |
| Lifetime Taxes | $594,733 | $395,968 |
| Terminal Wealth | $838,974(mostly taxable / tax-deferred) | $922,113(more of it is tax-free; not all Roth) |
Terminal wealth mix: tax-free (Roth, brokerage, cash) vs tax-deferred (Traditional).
| Default Path | Praxion Plan | |
|---|---|---|
| Gross Terminal Wealth | $838,974 | $922,113 |
| Tax-Free % | 27% | 97% |
| “Hidden” Tax Bill | $142,241 | $6,604 |
| Net Spendable Value | $696,732 | $915,510 |
While your total number may be smaller with Praxion, your buying power is higher because you’ve already paid the tax at a lower “wholesale” rate.
Think of your retirement like a bucket with a small leak (taxes). We just plugged the leak by moving money into a Tax-Free Roth account before the government forced you to take it out at a higher rate.
- Pre-RMD Roth conversions reduce forced income
- Lower marginal bracket exposure in later years
- Reduced compounding tax drag
- Smoother income profile lowers Medicare tiers
| Technical term | Why it matters |
|---|---|
| RMD Smoothing | Prevents a “Tax Spike” when you turn 73. |
| Bracket Arbitrage | Pays taxes now at a “discounted” rate (e.g., 12%) so you don’t pay 24% later. |
| Medicare Tier Lowering | Keeps your monthly healthcare costs lower by managing your reported income. |
- Multi-decade simulation
- Federal bracket modeling
- Account sequencing logic
- RMD law integration
- Social Security coordination
⚖️ Important Disclosure Section
Modeling Assumptions
These examples are synthetic and intended for demonstration purposes only. Projections assume historical return ranges, current federal tax structures, and modeled inflation. Actual outcomes vary based on tax law changes, investment performance, and individual behavior.