Sample Client — Retirement Tax Strategy
35-year projection starting 2026. Filing MFJ, resident of New Jersey. Federal ordinary and preferential brackets, provisional-income Social Security, two-year IRMAA lookback, and full state income tax are modeled every year.
Strategy comparison
After-tax ending value against the lifetime cost of getting there. Traditional IRA balances are discounted for embedded income tax so strategies are compared on a like-for-like basis.
| Strategy | Converted | Federal tax | State tax | IRMAA | Peak RMD | After-tax ending | vs baseline |
|---|---|---|---|---|---|---|---|
| Baseline / Taxable First | $0 | $3.15M | $456K | $300K | $334K | $16.0M | — |
| Fill 12% Bracket | $37K | $3.13M | $450K | $300K | $330K | $16.2M | +$137K |
| Fill 22% BracketSelected | $856K | $2.75M | $352K | $334K | $238K | $18.6M | +$2.56M |
| Fill 24% Bracket | $2.62M | $2.16M | $224K | $296K | $46K | $23.0M | +$7.00M |
| IRMAA-Aware Hybrid | $252K | $3.01M | $418K | $293K | $305K | $16.9M | +$884K |
| IRA First / RMD Smoothing | $0 | $3.07M | $433K | $305K | $317K | $15.8M | -$224K |
| Custom (Your Inputs) | $250K | $3.01M | $418K | $293K | $305K | $16.9M | +$881K |
Story in brief. Fill 24% Bracket produces the highest after-tax ending value at $23,030,825 — +$7.00M versus the baseline. Fill 24% Bracket carries the lowest lifetime tax and IRMAA cost at $2,677,164. When those differ, the higher-tax path is buying a larger tax-free Roth balance; weigh that against cash-flow needs and the survivor bracket.
Portfolio composition over time
Fill 22% Bracket — account balances at each year end.
Annual tax and surcharge stack
Federal ordinary tax, preferential-rate tax plus NIIT, state income tax, and Medicare IRMAA — with the federal marginal rate overlaid.
RMD pressure vs Roth conversions
Conversions in the pre-RMD window trade current income for lower required distributions later.
MAGI against IRMAA thresholds
Medicare surcharges use a two-year MAGI lookback. Crossing a line by one dollar costs a full tier for both spouses.
This is an advisor planning aid, not a tax return engine. Bracket, deduction, IRMAA, and state figures are 2026 planning placeholders that must be verified annually. Use firm-approved planning software for final suitability and client-ready recommendations.