This little calculator is a retirement planner designed to explore optimial withdraws from savings and IRA accounts. It uses a Linear Programming solution to maximize the minimum amount of money available to spend. As a side effect it minimizes the taxes that needs to be spent.
This is similar to the ideas of James Welch at www.i-orp.com but I wanted to explore some new ideas. ORP continues to be a much more complete tool. This version is mainly aimed at people who retire well before age 59.5.
- aftertax, IRA and Roth spending
- IRA->Roth conversions
- Federal income tax on IRA spending with 2017 tables
- Simplistic capital gains, assuming an average cost basis, at a fixed 15%
- Roth withdraw limitations before age 59
- Early IRA withdrawals have a 10% penalty. (this is added to 'tax')
- inflation
- Required Minimum Distributions from IRA
- Arbitrary income or expenses happening at certain years. Income can be taxed or not. This is used to model Social Security
- IRA 72(t) withdrawals
- Early withdrawals from Roth gains are not modeled (only contributions)
- Recording when existing Roth contributions can be accessed in config file
- Any other taxes
- new contributions to IRA or Roth
- Taxes are only for Married filing jointly at the moment
- Only the standard deduction for 2 people
- age 59 is assumed to be past 59.5
This program is written in Python and can be installed locally with
pip install --user ..
I am new to Python packaging so hints to make this easier for people are appreciated
- Copy
sample.tomlto a new file - Edit with your information
- run
fplan NEW.toml
The output is a table by age with the following columns. All numbers in table are in 1000s of dollars.
- save: amount in after-tax savings account
- send: send from savings this year
- IRA: balance of tax-deferred IRA acount
- fIRA: amount to pull from IRA this year. (before 59 with penalty)
- Roth: balance of tax-exempt Roth account
- fRoth: amount to pull from Roth this year
- IRA2R: money converted from the IRA to Roth this year
- rate: US tax bracket this year
- tax: tax spent this year (includes IRA 10% penlty)
- spend: net amount spent this year (includes income)
- extra: additional spending this year
This tools has been somewhat on the back burner for a couple years. That said, I am more than happy to help people to use it and understand the results. Send mail at Wayne wsc9tt@gmail.com or file issues on github.
The test directory contains test scripts to exercise the various subsystems.
Run python -m pytest to launch all of the tests.