Note that MaxiFi now has a Roth Conversion optimization option in the Premium and Professional versions. You will see it when you set up a maximization report. To help this feature run more quickly, you might first make sure that your Social Security strategy is optimized and then run the Roth Conversion optimization by itself instead of at the same time as the other maximization options.
If you do not want to use the optimization feature in Premium, you can 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.
See this video for help on Roth Conversions: Roth Conversions
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.
MaxiFi will allow you to compare two or more IRA to Roth conversion strategies that you create and show you the impact on present value of lifetime taxes as well as the impact on annual discretionary spending and Medicare B premiums. But it will not examine the nearly infinite number of possible combinations of dollar amounts and patterns of time and figure out, then recommend, which pattern is the optimal.
Please note: There are rules related to how long you must wait to withdraw from a Roth account both after opening it and after contributions or conversions. MaxiFi does not account for these rules so you should consider them separately before implementing any conversion plan. This article provides some information about these rules, but you may want to consult with a tax or financial advisor.