Hi - new user here.
The Roth conversion optimizer appears to maximize the end-of-life Total Savings. Is this a simple sum of your Regular, TD, and Roth Savings? Unfortunately, the IRA savings still will be taxed at the to the heirs over a distribution period of ten years. Is there a way to penalize the size of the IRA and end-of-life, vs the size of the Roth account? All my calculations with high growth estimates end up with large IRA balances, and very small Roth values.
For example, is it better to have a Estate with a 10 Million IRA, or a 6 Million Roth? If a single heir is receiving the IRA, that would be a 1 Million/year income, which would be taxed above 50% in most states, resulting in a worse outcome.
Thank you
@exsanchez You can penalize the TD balance by looking at the total savings balance in terms of Effective Dollars, where the TD balance is derated based on the effective tax rate specified on the Financial Assets > Management page. The specific field is called "Tax Rate for Converting Absolute Dollars to Effective Dollars". Incidentally, Roth conversions are optimized based on maximizing effective dollars.
Stuart
