Lifetime Planner IDEA: Add Roth Conversion Modeling in LTP

System
System Member admin
edited October 2023 in Budget and Planning Tools
This discussion was created from comments split from: Lifetime Planner IDEA: Improve how ROTH IRAs are Displayed and Modelled in LTP.


Lifetime Planner IDEA:  Add Roth Conversion Modeling in LTP

pdq said:

Also, Roth conversions should be modeled in LTP what-if/scenarios, not just contributions. Roth conversions also affect taxable income and, thus, tax rate. It is an important annual decision for retirees with traditional IRA's to consider. Done well, this would be an ideal area for LTP to add real value to retiree decisions.

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  • pdq
    pdq Quicken Windows Subscription Member ✭✭
    Also, Roth conversions should be modeled in LTP what-if/scenarios, not just contributions. Roth conversions also affect taxable income and, thus, tax rate. It is an important annual decision for retirees with traditional IRA's to consider. Done well, this would be an ideal area for LTP to add real value to retiree decisions.
  • Scooterlam
    Scooterlam Quicken Windows Subscription SuperUser, Windows Beta Beta
    @pdq I asked a moderator to break-out your Roth Conversion suggestion into its own IDEA post so that this important feature doesn't get lost.   For sure, improvements to ROTH handling in LTP (prior idea)  will make this ROTH conversion idea even better.

    Please be sure to vote.
  • pdq
    pdq Quicken Windows Subscription Member ✭✭
    @Scooterlam Thank you!
  • joesdeli
    joesdeli Quicken Windows Subscription Member ✭✭
    Modeling Roth Conversions would be a great feature!

    Also the ability to specify the order of withdrawals verses the "normal" order (taxable, tax deferred then tax free). By having the ability to adjust the order, amount and source of withdrawals will provide the ability to be as tax efficient as possible.
  • Scooterlam
    Scooterlam Quicken Windows Subscription SuperUser, Windows Beta Beta
    edited October 2021
    @joesdeli Be sure to vote for this idea, if you haven't already done so. 

    Also, there is a broader list of Lifetime Planner ideas and bugs reported here: https://community.quicken.com/discussion/7713110/lifetime-planner-bug-and-idea-list-make-yourself-heard/p1   

    Be sure to have a look and vote for the ideas you like.   

    You mention order of withdrawals,  I have a more in-depth IDEA posted HERE. :)
  • GC_
    GC_ Quicken Windows 2017 Member

    I'd like to see Roth 401k functionality added as well. In the same 401k account

  • Jim_Harman
    Jim_Harman Quicken Windows Subscription SuperUser ✭✭✭✭✭

    There was an Idea related to Roth 401(k)s earlier this year but it has been closed and archived.

    Quicken made some improvements in the Paycheck Wizard but it would be difficult to really combine the traditional and Roth portions into one account.

    For now you best bet may be to choose different investments for the Roth portion of the account.

    QWin Premier subscription
  • mikek753b
    mikek753b Member ✭✭✭✭

    Is there any work on Quicken side for this Roth conversion modeling?

    Any hope that Quicken will implement this feature?

    There is as example NewRetirement that helps with retirement planning

    The HolistiPlan even better to cover retirement and tax planning.

    I'd like to avoid multiple tools if possible

    Best Regards

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