I think maybe I found a way to use Firecalc to calculate the tax effect of my 10-year Roth conversion program at the top of the 15% tax bracket:
On the first page ("How Much Will You Spend?"), I entered the target amount of my conversion tax payments as an "increase" of my withdrawal starting this year (2006). I check the inflation-adjusted checkbox in order to keep up with the future 15% bracket creep.
Then I enter the same number (the target amount of my conversion tax payments) as a "decrease" in my withddrawal starting in the year of 2016 (10 years later). And I ask Firecalc for my results in terms of "how much (I) spend each year."
Question: should I check the inflation-adjusted checkbox for this "decrease?" It makes a significant difference in the results if this "increase" and "decrease aren't both inflation-adjusted (or not). So should I always keep this withdrawal "increase" and "decrease" the same in this regard, that is, they both should be inflation-adjusted or both not be inflation-adjusted? This is an important distinction, I think.
Does the above method properly use Firecalc to simulate the effect of the 10 years of tax payments caused by my proposed 10-year Roth conversion plan? Am I making any mistakes here?
I really appreciate any comments and suggestions on how to use Firecalc as accurately as possible for the purpose as set forth above. Thanks a lot, everyone, for all your help!
On the first page ("How Much Will You Spend?"), I entered the target amount of my conversion tax payments as an "increase" of my withdrawal starting this year (2006). I check the inflation-adjusted checkbox in order to keep up with the future 15% bracket creep.
Then I enter the same number (the target amount of my conversion tax payments) as a "decrease" in my withddrawal starting in the year of 2016 (10 years later). And I ask Firecalc for my results in terms of "how much (I) spend each year."
Question: should I check the inflation-adjusted checkbox for this "decrease?" It makes a significant difference in the results if this "increase" and "decrease aren't both inflation-adjusted (or not). So should I always keep this withdrawal "increase" and "decrease" the same in this regard, that is, they both should be inflation-adjusted or both not be inflation-adjusted? This is an important distinction, I think.
Does the above method properly use Firecalc to simulate the effect of the 10 years of tax payments caused by my proposed 10-year Roth conversion plan? Am I making any mistakes here?
I really appreciate any comments and suggestions on how to use Firecalc as accurately as possible for the purpose as set forth above. Thanks a lot, everyone, for all your help!
