TI
Tax Impactby CPDT
Private planning workspace

2026 planning assumptions

Tax & Medicare decision

Compare net cash funded from NQ assets or an IRA, with an optional Roth conversion funded from the same available IRA balance.

Tax year2026Assumptions locked
Planning inputs 1Household, annual income and primary funding accounts
Annual Gross Income: $120,000

Option 1 · Planning inputs

NQ position
Additional Gross-Up Withdrawal Needed
$51,881
Med / IRMAA 1$215,619NQ sale · $218,000 AGI
Med / IRMAA 2$355,619NQ sale · $274,000 AGI
Med / IRMAA 3$448,119 maxAbove available NQ balance
Additional NQ positionsPositions 3–5 · optional
Household profileFiling, state and age assumptions
Payroll & deductions$0 pre-tax applied
Applied$35,500
HSA contributionsFamily · $10,750 limit
$10,750 HSA room remaining
Additional InputsWithholding and planning details
Tax already withheld0% Fed. · 0% CO
Est. Fed. / year$0
W-2 estimate uses 2026 IRS annual percentage-method tables with only W-4 Steps 1 and 5 completed.
Planning inputs 2Readiness, additional income & review

Transaction readiness

! Prior-year tax missing; 90% current-year method shown✓ No IRA basis entered✓ No IRMAA appeal event flagged
Federal safe-harbor still needed
$6,412Target $6,412 · next date Sep 15, 2026
CO projected payment
$3,674After entered withholding and estimates
IRMAA timing
2026 → 2028$87,000 MAGI room to IRMAA 1
IRA tax character
100% taxable$0 entered basis · $0 QCD
Additional income detailsSplit investment income and add less-common items
Other income
State / Local Refund (taxable)
$
Tax-exempt Interest
$
Excluded from federal tax; included in IRMAA MAGI
Investment-income split
Interest / Nonqualified Dividends
$
Short-Term Capital Gains
$
Qualified Dividends
$
Long-Term Capital Gains
$
Additional Qualified Dividends
$
Capital-gain Distributions
$
Payment, IRA basis & IRMAA reviewOptional planning guardrails
Modeled IRA taxable percentage 100%Next estimated-payment date Sep 15, 2026IRA basis uses the entered balance as a planning approximation; verify all Traditional, SEP and SIMPLE IRA balances and Form 8606. QCD applies only to the entered IRA/RMD income.
Planning input keyDefinitions and modeling notes
Ages & Medicare
Ages are shared with Roth planning. IRMAA exposure begins at age 63 for Medicare’s usual two-year lookback.
Income entries
Social Security is entered gross and its taxable portion is calculated. Enter W2 income before the optional pre-tax payroll deductions.
Investment totals
The compact fields combine income with similar rates. Use Additional income details to split capital gains from dividends when a capital-loss carryforward applies.
Deductions
The standard deduction is used by default. Select itemized deductions to replace it with the expected Schedule A amount; any eligible enhanced senior deduction is added in either mode.
Capital gains
Qualified dividends, distributions, realized LTCG, carryforward losses, rent, and taxable state/local refunds feed the applicable tax outputs.
Withholding
Percentage withholding applies to Social Security, IRA/pension, taxable earned income, and modeled IRA cash withdrawals—not Roth conversions, capital gains, or rent.
NQ positions
Position value limits the sale; unrealized gain determines its embedded-gain percentage. Expand Positions 2–5 only when needed.
IRA balance
The shared IRA/401(k) balance feeds Roth planning and caps the combined IRA cash withdrawal and Roth conversion.
Proposed options
NQ and IRA fund the cash need from one account type. NQ + Roth pairs an NQ sale with a conversion; IRA + Roth pairs an IRA cash withdrawal with a separate conversion.
Age-55 exception
Select only for an eligible employer-plan cash distribution after qualifying separation. It does not apply to IRAs or Roth conversions.
Annual gross income sources
Income taxableOrdinary-income treatment
Investment incomeCombined planning totals
Social Security (Gross)
$
Taxable portion is calculated
Interest / Nonqualified Dividends / Short-Term Capital Gains
$
Ordinary rates · included in NIIT
IRA / 401(k) / Pension / RMDs
$
Qualified Dividends / Long-Term Capital Gains
$
Preferential federal rates
W-2 / Earned Income
$
Before pre-tax payroll deductions
Rent, royalties & other incomeOptional taxable income sources
Net Rental / Passive Income
$
Royalties
$
Modeled as ordinary passive income and included in NIIT
Other Taxable Ordinary Income
$

Option 1 · Broader Bracket Map View

AGI change +$25,900Tax change +$1,848
Fixed $800,000 filing-status scale · AGI lines move while the full bracket view stays in place
Ordinary bracketsTaxable income
10% · $0+
12% · $24,800+
22% · $100,800+
24% · $211,400+
32% · $403,550+
35% · $512,450+
37% · $768,700+
Current AGI: $105,100
Proposed AGI: $131,000
LTCG + NIITPreferential income
0% LTCG · $0+
15% LTCG · $98,900+
20% LTCG · $613,700+
NIIT 3.8% · $250,000
Current tax owed: $8,950 | E.rate 15.5%
Total Tax: $10,798 | E.rate 12.9%
Medicare / IRMAAMAGI thresholds
IRMAA 0 · $0+ · $2,435/yr ea.
IRMAA 1 · $218,000+ · $3,583/yr ea.
IRMAA 2 · $274,000+ · $5,320/yr ea.
IRMAA 3 · $342,000+ · $7,055/yr ea.
IRMAA 4 · $410,000+ · $8,790/yr ea.
IRMAA 5 · $750,000+ · $9,371/yr ea.
Total annual IRMAA premium: $4,870
Premium increase over current: $0
Selected strategy NQNet need $50,000Proposed taxable income $83,500

Option 1 comparison

Taxable ordinary income after deductionsLTCG + qualified dividendsTax withheldTax due
IRMAA 1$218,000NIIT 3.8%$250,000IRMAA 2$274,000
AGI $105,100
$0
$57,600
15.5%
$8,950Total Tax
$8,950
CurrentTax
IRMAA 1$218,000NIIT 3.8%$250,000IRMAA 2$274,000
AGI $131,000
$20,000
$63,500
12.9%
$10,798Total Tax
$10,798
ProposedTax
IRMAA 1$218,000NIIT 3.8%$250,000IRMAA 2$274,000
AGI $131,752
$20,752
$63,500
12.9%
$10,831Total Tax
$10,831
Gross-upTax
1
ScenarioCurrent
Total AGI$105,100
Total Tax Increase (w/IRMAA)Baseline
Total tax owed / eff. rate$8,950 / 15.5%
Total Fed. Tax / eff. rate$6,416 / 11.1%
Total CO Tax / eff. rate$2,534 / 4.4%
Payroll FICA & All-in tax burden$0 / $8,950
Total Fed. tax on LTCG, NIIT & rent$0 / 0.00% (NIIT $0)
Total CO LTCG + rent / eff. rate$0 / 0.00%
Fed. safe-harbor still needed$5,774 · by Sep 15, 2026
Medicare / IRMAA outcomeIRMAA 0 · $4,870/yr
Annual gross income (before deductions)$120,000
Total Federal Taxable Income$57,600
Taxable ordinary income after deductions$57,600
LTCG + qualified dividends after deductions$0
Taxable Soc. Sec. included$45,100
Total Income tax / eff. rate$8,950 / 15.54%
Total LTCG tax / eff. rate$0 / 0.00%
Fed. LTCG tax / eff. rate$0 / 0.00%
Fed. NIIT (3.8%)$0 / 0.00%
Total Fed. LTCG (+NIIT) / eff. rate$0 / 0.00%
CO LTCG tax / eff. rate$0 / 0.00%
Fed. tax withheld / prepaid$0
CO tax withheld / prepaid$0
Federal safe-harbor target$5,774
CO projected payment remaining$2,534
Remaining tax balance due$8,950
2
ScenarioProposed
Gross withdrawal$50,000
Net cash$48,152
Total Tax Increase (w/IRMAA)$1,848 vs Current
Total tax owed / eff. rate$10,798 / 12.9%
Total Fed. Tax / eff. rate$7,124 / 8.5%
Total CO Tax / eff. rate$3,674 / 4.4%
Payroll FICA & All-in tax burden$0 / $10,798
Total Fed. tax on LTCG, NIIT & rent$708 / 3.54% (NIIT $0)
Total CO LTCG + rent / eff. rate$1,140 / 5.70%
Fed. safe-harbor still needed$6,412 · by Sep 15, 2026
Medicare / IRMAA outcomeIRMAA 0 · $4,870/yr
Annual gross income (before deductions)$145,900
Total Federal Taxable Income$83,500
Taxable ordinary income after deductions$63,500
LTCG + qualified dividends after deductions$20,000
Taxable Soc. Sec. included$51,000
Total Income tax / eff. rate$9,918 / 15.62%
Total LTCG tax / eff. rate$880 / 4.40%
Fed. LTCG tax / eff. rate$0 / 0.00%
Fed. NIIT (3.8%)$0 / 0.00%
Total Fed. LTCG (+NIIT) / eff. rate$0 / 0.00%
CO LTCG tax / eff. rate$880 / 4.40%
Fed. tax withheld / prepaid$0
CO tax withheld / prepaid$0
Federal safe-harbor target$6,412
CO projected payment remaining$3,674
Remaining tax balance due$10,798
3
ScenarioGross-up
Gross withdrawal$51,881
Net cash$50,000
Total Tax Increase (w/IRMAA)$1,881 vs Current · $33 vs Proposed
Total tax owed / eff. rate$10,831 / 12.9%
Total Fed. Tax / eff. rate$7,124 / 8.5%
Total CO Tax / eff. rate$3,707 / 4.4%
Payroll FICA & All-in tax burden$0 / $10,831
Total Fed. tax on LTCG, NIIT & rent$708 / 3.41% (NIIT $0)
Total CO LTCG + rent / eff. rate$1,173 / 5.65%
Fed. safe-harbor still needed$6,412 · by Sep 15, 2026
Medicare / IRMAA outcomeIRMAA 0 · $4,870/yr
Annual gross income (before deductions)$146,652
Total Federal Taxable Income$84,252
Taxable ordinary income after deductions$63,500
LTCG + qualified dividends after deductions$20,752
Taxable Soc. Sec. included$51,000
Total Income tax / eff. rate$9,918 / 15.62%
Total LTCG tax / eff. rate$913 / 4.40%
Fed. LTCG tax / eff. rate$0 / 0.00%
Fed. NIIT (3.8%)$0 / 0.00%
Total Fed. LTCG (+NIIT) / eff. rate$0 / 0.00%
CO LTCG tax / eff. rate$913 / 4.40%
Fed. tax withheld / prepaid$0
CO tax withheld / prepaid$0
Federal safe-harbor target$6,412
CO projected payment remaining$3,707
Remaining tax balance due$10,831

Option 1 scenario details

$50,000 net · NQ

Key results above · supporting detail shown

Option 2 · Broader Bracket Map View

AGI change +$0Tax change +$0
NQ position
Med / IRMAA 1$282,250NQ sale · $218,000 AGI
Med / IRMAA 2$422,250NQ sale · $274,000 AGI
Med / IRMAA 3$500,000 maxAbove available NQ balance
Fixed $800,000 filing-status scale · AGI lines move while the full bracket view stays in place
Ordinary bracketsTaxable income
10% · $0+
12% · $24,800+
22% · $100,800+
24% · $211,400+
32% · $403,550+
35% · $512,450+
37% · $768,700+
Current AGI: $105,100
Proposed AGI: $105,100
LTCG + NIITPreferential income
0% LTCG · $0+
15% LTCG · $98,900+
20% LTCG · $613,700+
NIIT 3.8% · $250,000
Current tax owed: $8,950 | E.rate 15.5%
Total Tax: $8,950 | E.rate 15.5%
Medicare / IRMAAMAGI thresholds
IRMAA 0 · $0+ · $2,435/yr ea.
IRMAA 1 · $218,000+ · $3,583/yr ea.
IRMAA 2 · $274,000+ · $5,320/yr ea.
IRMAA 3 · $342,000+ · $7,055/yr ea.
IRMAA 4 · $410,000+ · $8,790/yr ea.
IRMAA 5 · $750,000+ · $9,371/yr ea.
Total annual IRMAA premium: $4,870
Premium increase over current: $0
Selected strategy NQNet need $0Proposed taxable income $57,600

Option 2 comparison

NQ position
Med / IRMAA 1$282,250NQ sale · $218,000 AGI
Med / IRMAA 2$422,250NQ sale · $274,000 AGI
Med / IRMAA 3$500,000 maxAbove available NQ balance
Taxable ordinary income after deductionsLTCG + qualified dividendsTax withheldTax due