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Welcome back, James

Age 65 · 2026 · RMD begins in 2036 (10 years)

Your Retirement Milestones

You
Spouse
SS
Early
Medi-
care
Retire
SS
FRA
SS
Max
SS
Start
RMD
Begins
Tax Valley
2015
2020
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2040
2045
2050
SS
Early
Medi-
care
Retire
SS
FRA
SS
Max
SS
Start
RMD
Begins

Your Snapshots

Medicare

Part A covers hospital care (usually premium-free), Part B covers outpatient services (~$203/mo in 2026), and Part D covers prescription drugs. Higher earners pay IRMAA surcharges based on income from two years prior.

You

Eligible

2026

Part A

Not enrolled

Part B

Not enrolled

Eligible but not yet enrolled in Part A & B. Review options →

Spouse

Eligible

2027 (in 1 yr)

Part A

Not enrolled

Part B

Not enrolled

Social Security

Benefits can begin as early as age 62 (reduced) or be delayed to age 70 (maximum — ~8% more per year past FRA). Your Full Retirement Age is 67. Delaying SS is one of the most impactful retirement decisions you can make.

  • Your SS starts: 2031 (age 70)
  • Estimated benefit: $36k/yr
  • Spouse SS: $24k /yr starting 2032
RMDs — Required Minimum Distributions

RMDs begin at age 75 from traditional 401k and IRA accounts. The amount is your prior year-end balance divided by an IRS life expectancy factor — rising each year. Failure to take the full RMD triggers a 25% excise tax on the shortfall. Qualified Charitable Distributions (QCDs) from age 70½ count toward RMDs tax-free.

  • IRA / 401k / 403b balance: $412k
  • Roth IRA balance: $75k
  • RMD begins: 2036 (10 yrs away)
Legacy & Tax Plan

Under SECURE 2.0, heirs who inherit a traditional IRA must withdraw everything within 10 years, paying income tax on each withdrawal. Inherited Roth IRAs pass tax-free. Roth conversions now reduce both your future RMDs and your heirs' taxable inheritance.

  • Conversion goal: Drain IRA fully
  • Aggressiveness: Conservative — no surcharge
  • Est. heir IRA RMD (baseline): $41k/yr (÷10 rough estimate)
  • Roth (tax-free to heirs): $75k
  • View full projection →
Home Equity Line of Credit

A HELOC is an emergency liquidity tool for retirement — a credit line secured against your home that costs nothing if unused. It provides flexible, tax-neutral cash for temporary needs without forcing you to sell investments at a bad time or take large taxable distributions.

Apply now while you have employment income. HELOCs are income-qualified — most banks won't approve after retirement regardless of net worth.

Typical costs

  • Application: $0-$1,500 (many lenders waive closing costs)
  • Annual fee: $0-$75/yr while unused
  • Interest: Variable, Prime + 0-2% (only on amounts drawn)

Where to apply: Start with your primary bank or credit union — existing customers often get rate discounts and waived fees. Credit unions frequently offer the lowest rates.

Quarterly Plan Review

Your plan works best when it reflects reality. Instead of forecasting future contributions, update your actual balances each quarter — this naturally captures contributions, market changes, and life adjustments.

What to check each quarter

  • Account balances — IRA, Roth, taxable, and HSA with current values
  • Income changes — raise, job change, new side income
  • Expense changes — new recurring costs, paid-off debts
  • Life events — marriage, dependents, health changes, home purchase
  • Retirement timeline — still planning to retire the same year?

Current Balances

IRA / 401k / 403b$412k
Roth IRA$75k
Taxable$450k
HSA$18k
Total assets$955k
Annual expenses$53k/yr
Plan fundingFully funded
Roth Conversion Status

Converting pre-tax IRA funds to a Roth reduces future RMDs, lowers lifetime taxes, and passes tax-free to heirs. The trade-off: you pay taxes now at today's rates.

Conversion Progress

Today$487k
$412k
$75k
After conversions$2.0M
$2.0M
Pre-tax IRA Tax-free Roth

Total planned conversions: $536k

Conversions Begin in 2027

No conversion recommended for 2026 — your plan begins converting at retirement in 2027 (1 year away).

First year conversion: $98,441 (+$5,913 est. tax)

Your Strategy

Lifetime Plan Impact

Conv. tax

$41k

RMD tax saved

$53k

Heirs save

~$177k

Heirs: $59k/yr forced withdrawals → $0/yr with conversions (est. ~30% rate)

Quarterly Estimated Taxes

Estimated quarterly payments cover taxes on income that isn't subject to paycheck withholding — Roth conversions, investment income, and Social Security benefits. Missing or underpaying a quarter can trigger an IRS penalty.

2026 Income
W2 wages$187,000
RMDs$4,148
Investment & other$2,000
MAGI$193,148
Less: standard deduction$39,261
2026 Taxes
Federal$23,223
Total tax$23,223
Effective rate12.0%
Incremental tax from
RMDs$967
Less: est. W2 federal withholding$23,480
Estimated payment due$0
QuarterIncome PeriodDue DateFederalTotal
Q1Jan – MarApr 15, 2026$0$0
Q2Apr – MayJun 15, 2026$0$0
Q3Jun – AugSep 15, 2026$0$0
Q4Sep – DecJan 15, 2027$0$0
Annual Total$0$0

Estimates are based on your plan inputs and may differ from your actual liability. The IRS safe harbor rule lets you avoid underpayment penalties by paying at least 100% of last year's tax (or 110% if your prior-year AGI exceeded $150,000) — or 90% of this year's estimated tax, whichever is less. Consult a tax advisor for your precise amounts.