How to use Step 5

Step 5: Your Assets and Accounts

Enter the total current value of each account or asset type you indicated on Step 1.

Make sure to fill dates and values here.

No asset accounts selected. Go back to Step 1 and check at least one asset type to continue.

How This Model Calculates Withdrawals & Taxes

Step 1 — Calculate Your Monthly Income Gap

Each month the model compares your target retirement income against your guaranteed fixed income — Social Security, pension, and any other income you entered. The shortfall is your income gap.

                        Income Gap = Target Income − (Social Security + Pension + Other Fixed Income)
                    

If your fixed income already covers your target, no account withdrawals are needed that month.

Step 2 — Draw from Non-Qualified (Savings/Brokerage) Accounts First

When a gap exists, the model first draws from your non-qualified accounts — savings accounts, brokerage accounts (cost basis), and CDs. These are spent first because their tax benefit is limited compared to tax-deferred or Roth accounts.

No gross-up is needed. Every dollar withdrawn is a dollar of spending cash.

Step 3 — Draw from Qualified (Pre-Tax) Accounts Second

Once non-qualified accounts are exhausted, remaining income gap is filled from your qualified (pre-tax) accounts — Traditional 401(k), Traditional IRA, 403(b), and similar accounts. All qualified withdrawals are taxable as ordinary income.

Step 4 — Draw from Roth Accounts Last

Roth accounts — Roth IRA, Roth 401(k), Roth 403(b) — are preserved as long as possible. Because Roth withdrawals are tax-free and not subject to Required Minimum Distributions, they are the most valuable funds to keep growing. The model only draws from Roth accounts after both non-qualified and qualified balances are depleted.

Annual Tax Calculation

At the end of each year the model calculates your estimated federal and state income tax. Taxable income consists of:

All qualified (pre-tax) account withdrawals for the year
Pension income
Other fixed income
The taxable portion of your Social Security benefit

Note: Non-qualified and Roth withdrawals do not count as taxable income. As your qualified balance depletes, your annual tax bill will decrease — sometimes sharply.

Social Security Taxability: The IRS uses a "provisional income" test. Above certain thresholds, up to 85% of your Social Security benefit becomes taxable income. Federal tax is applied using 2026 brackets; state tax at the flat rate you provided.

Important: This model uses a fixed withdrawal order — non-qualified first, then qualified, then Roth. This is a simplification. In practice, some retirees benefit from a "tax bracket filling" approach: drawing down pre-tax accounts strategically while still in lower tax brackets, to reduce future RMDs. This model does not optimize for that strategy. Use these projections for planning guidance and review them with a qualified financial professional.

Future Contributions

Tell us when you plan to stop working and how much you'll continue saving each year until then.

When do you plan to stop contributing to these accounts?

Annual Future Contributions ($)

Set the stop date above — contributions are only counted in your forecast up to that date.

Projected Balance Calculation

Defined retirement timeline not yet set. Set your retirement date to see growth projections.

Today's
Balance

Pre-Retirement
Windfalls

Contributions
& Growth

Projected Total Balance

+$0

Pre-Retirement Growth Rate — applies today through your withdrawal start date only 5.0%

0% 12%

Once withdrawals begin, a separate rate controls portfolio performance during retirement.

Future Windfalls & Inheritance

Note: The model will incorporate these amounts into your account and asset balances as of the dates you have designated.

Dollar Amount	Date Expected	Tax Status i

Leave unused rows blank. Past dates are ignored by the model.

🎁 Future Windfalls

Do you expect to receive an inheritance, a lump sum, or other one-time future payment?

Household Totals Guidance

Enter the combined total for both you and your spouse in each bucket below. Add all Qualified accounts together; add all Non-Qualified accounts together; add all Roth accounts together. Do not mix the three types — the model keeps them as separate tax buckets: Qualified (IRA/401k) withdrawals are fully taxable, Non-Qualified (brokerage/savings) withdrawals are partially taxable (cost basis only), and Roth withdrawals are completely tax-free.

Account Balance Worksheet

Enter individual balances below — totals will be applied to your main page.

Column 1 — Qualified (Pre-Tax)

You haven’t paid income tax on this money yet. Withdrawals will be taxed as ordinary income.

Examples: Traditional 401(k) • 403(b) • Traditional IRA • SEP IRA • 457(b)

Rule of thumb: if you got a tax deduction when you contributed, it goes here.

Column 2 — Non-Qualified (Savings/Brokerage)

Taxable accounts — you’ve already paid tax on principal but gains may be taxable when sold.

Examples: Savings accounts • CDs • Brokerage (cost basis / principal only)

Pro tip: for brokerage accounts, use only your deposited principal for the most conservative estimate.

Column 3 — Roth Accounts (Tax-Free)

After-tax contributions — withdrawals are completely tax-free in retirement. Preserved last in the model.

Examples: Roth IRA • Roth 401(k) • Roth 403(b)

Retirement Modeler