If you want to create a plan where you convert traditional IRA or 401K assets to a Roth, you can indicate amounts and years for the conversion. Simply go to the profile data entry area, find the retirement account you want to convert, and enter amounts in the 'Roth Conversion Amounts' area. You can enter any amounts, but note that if the conversion amounts exceed the assets available in the account, assets will be converted from any other Individual or Employer-Based Accounts you have entered. Once conversion amounts exceed assets available in all of your accounts, the amounts will simply be ignored.

When you run your Base Plan, in the Retirement Accounts report you will see both a withdrawal and a Roth contribution in each year you indicated a conversion amount. The program will tax the withdrawal as it should, and permit that contribution to the Roth. The net impact will be a tax payment (but no tax penalty) for that year.

The program does not calculate for you how much you should convert in this manner. If you wish to compare the impact of this Roth conversion to not converting, or to converting different amounts, then set up your conversion model in an alternative profile. When you run the comparison report, you will see the lifetime present value of the advantage (if there is an advantage). You will also see a graph showing the annual discretionary spending difference between the two models. If you look at the Lifetime Balance Sheet of the two models (you can toggle between them) you can see the lifetime present value of all income and spending and see where the efficiency is gained--which is probably in the lifetime tax amount.