Would appreciate additional details or discussion on the Roth conversion analysis page including the optimization function. My optimization says "no conversion" but not sure it is correct.
The optimization algorithm uses strictly the tax-bracket-restricted method and runs though all combinations of percentage-of-accounts-to-convert and marginal tax brackets, saves the total net savings at the end of the modeling period for each of these cases, and then compares the best case (i.e., the one with the largest net savings at the end) to the baseline case (i.e., one in which no Roth conversions are done). If the baseline case is better than the best optimized Roth conversion it generates the message about "no conversions" being the best option.
If you think PRC is not producing correct results then I encourage you to submit a Gold problem report along with an export data file so it can be investigated.
Financial Architects has an excellent white paper on how to analyze the pro's and cons of Traditional versus Roth IRAs, along with other useful financial planning spreadsheets.
https://www.financialarchitectsllc.com/resources
In my annual net worth statement, I have started tracking my estimated future income tax obligation for my tax deferred accounts. Roth IRA conversions can appear to be not worth doing until one considers the taxes that might be owed when funds are withdrawn.
I need to get up to speed on what PRC is modeling.
