How do I model Roth conversions correctly in the Retirement Planner?
Roth conversions can be modeled in Retirement planner - Taxes & withdrawals tab:
- Click + Add Roth conversion.
- Enter the annual amount you plan to convert and the date range (start year to end year).
- Set the Wealth impact to Transfer (not Decrease), since a conversion moves money between account types rather than leaving the portfolio.
The conversion shows up in your projection, and PortfolioPilot adds the conversion amount to your taxable income in those years. Make sure your Tax filing status and State / province of residence in the Tax profile section are set correctly, since they affect the projected tax liability.
To compare two Roth strategies side-by-side (e.g. convert $50k/year vs $100k/year), save each variation as a what-if scenario and switch between them on the projection chart.
