Frequently asked questions

How much can I safely withdraw from retirement savings?
The withdrawal planner solves for the portfolio size, safe withdrawal rate, or part-time income needed to fund a target spending level. It withdraws sequentially across taxable, traditional, and Roth accounts and accounts for taxes, so the result reflects after-tax spending rather than a headline balance.
How does the planner handle taxes across account types?
It models the tax treatment of each account — taxable (capital gains), traditional (ordinary income), and Roth (tax-free) — and layers in Social Security taxation, the SS 'tax torpedo,' Medicare IRMAA tiers, and the net investment income tax where they apply, producing a blended effective tax rate on withdrawals.
What is the Social Security tax torpedo?
The 'tax torpedo' is the sharp rise in marginal tax rate that can occur when additional income makes more of a Social Security benefit taxable. Because up to 85% of benefits can be taxed, a modest extra withdrawal can be taxed at an effective rate well above its nominal bracket. The planner detects when withdrawals trigger this effect.