I bought your software in November 2024. I wanted to do this exact thing , but your software didn’t allow me to use IRA money to pay taxes without a lot of manual messing around. Have you changed your software to make this adjustment easier?
I agree. It seems like there ought to be a setting that allows a user to use unconverted funds to pay for the conversion. In the output, ideally, the user could see the amount withdrawn, the amount converted, the amount that goes toward paying the additional taxes on the converted amount, and the amount that is used to offset the tax payment.
But I hope you are underestimating human adaptability and the continued importance of human judgment. Historically humans have been able to thrive and leverage technological advancement.
This post also got me thinking about when I had started recommending your software to more "do-it-yourself" participants in my adult-education courses on retirement planning. I looked it up: I started recommending ESPlannerPlus in 2011 and switched to recommending newer versions as you released them.
I'm glad to see you address this issue. Running my own numbers convinced me of the value of continued Roth conversions even after I had used up all of my annually taxable savings to pay the taxes. I then switched to paying Roth conversion taxes by having part of the conversion withheld. I left enough funds in traditional IRA to cover my anticipated lifetime charitable giving (thanks Congress for making Qualified Charitable Distributions "permanent").
like and subescreebe guys
(my name is ira pls tell your fans to stop tapping me)
I bought your software in November 2024. I wanted to do this exact thing , but your software didn’t allow me to use IRA money to pay taxes without a lot of manual messing around. Have you changed your software to make this adjustment easier?
I agree. It seems like there ought to be a setting that allows a user to use unconverted funds to pay for the conversion. In the output, ideally, the user could see the amount withdrawn, the amount converted, the amount that goes toward paying the additional taxes on the converted amount, and the amount that is used to offset the tax payment.
Once you move the money from the IRA to the Roth, you have to leave it in the Roth for 5 years.
How do you take into account not needing the use of your money for 5 years?
I’m doing a slow motion, incremental Roth IRA conversion because of the 5 years rule. I’ll get there, but I plan to take 10 years
You raise some excellent points.
But I hope you are underestimating human adaptability and the continued importance of human judgment. Historically humans have been able to thrive and leverage technological advancement.
This post also got me thinking about when I had started recommending your software to more "do-it-yourself" participants in my adult-education courses on retirement planning. I looked it up: I started recommending ESPlannerPlus in 2011 and switched to recommending newer versions as you released them.
I'm glad to see you address this issue. Running my own numbers convinced me of the value of continued Roth conversions even after I had used up all of my annually taxable savings to pay the taxes. I then switched to paying Roth conversion taxes by having part of the conversion withheld. I left enough funds in traditional IRA to cover my anticipated lifetime charitable giving (thanks Congress for making Qualified Charitable Distributions "permanent").