---
title: Level Distributions Using Roth Conversions
description: Level Distributions Using Roth Conversions spreads a set dollar amount out of tax-deferred accounts evenly across a range of years, with Roth conversions filling whatever each year's required and planned distributions don't.
---

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# Level Distributions Using Roth Conversions

## Level Distributions Using Roth Conversions spreads a set dollar amount out of tax-deferred accounts evenly across a range of years, with Roth conversions filling whatever each year's required and planned distributions don't.

Level Distributions Using Roth Conversions is a conversion strategy in the Roth Projection Tool. Instead of filling a tax bracket or IRMAA threshold with Roth Conversions, it targets a total dollar amount of of distributions from Tax Deferred Assets. Ultimately, a user enters how much they wish to draw from a client's tax-deferred assets, and the years they wish to do so in, and Holistiplan calculates an even yearly distribution including RMD, QCDs, planned distributions, withdrawals needed to cover spending or taxes, layered with the Roth conversion.

This is helpful in a few different use cases:

- Drawing down an IRA over a set period
- Converting the entire balance of a client’s tax-deferred assets over a set period

To begin, click **Level Distributions Using Roth Conversions** in the **Roth Conversion(s)** section of the Control Panel on the Roth Projection page. *The same button also appears above the **Tax Bracket Visualizer** chart, next to **Fill a Tax Bracket or IRMAA Threshold** and **Compare All Brackets**.*

![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Oct-23-2026-05-53-56-5602-PM.png?width=365&height=450&name=undefined-Oct-23-2026-05-53-56-5602-PM.png)

 

Users should note that the Control Panel button appears only on standalone Roth projections. On a Roth projection created from a Scenario, the button is available above the Tax Bracket Visualizer chart.

If the projection has unsaved changes, an **Unsaved Changes** prompt appears first. Click **Save & Continue** to save the changes and open the tool. 

---

### **How Level Distributions Work**

The amount entered is treated as today's value of the tax-deferred assets to be drawn down. Holistiplan uses the **tax deferred assets rate of return** from the Control Panel to convert that amount into an equal distribution for each year in the range, the same way an annuity pays out a level amount over a fixed term.

Because the remaining balance keeps growing during the conversion period, the total distributed over the full range will be *more* than the amount entered. For example, $500,000 distributed from 2026 through 2035 at an 8% rate of return produces yearly distributions that add up to well over $500,000.

The level amount covers *everything* that comes out of tax-deferred accounts that year, not just the Roth conversion. Each year's distribution is made up of:

- Required Minimum Distributions (or Qualified Charitable Distributions, if larger)
- Other tax-deferred distributions already planned in the projection
- Tax-deferred withdrawals needed to cover spending
- Taxes on the conversion paid from tax-deferred assets
- The Roth conversion itself

The Roth conversion fills whatever room is left.

**For example:**

 A $100,000 yearly target in a year with a $20,000 RMD results in an $80,000 Roth conversion. If RMDs and planned distributions already meet the target in a given year, no conversion is made that year.

| **Year's Target** | **RMD** | **Taxes Paid from Tax Deferred** | **Roth Conversion** |
| --- | --- | --- | --- |
| $100,000 | $20,000 | $0 | $80,000 |
| $100,000 | $20,000 | $15,000 | $65,000 |
| $100,000 | $100,000 | $0 | $0 |

Each year's distribution is recalculated from the amount remaining. If the tax-deferred balance falls short in one year, the remaining years adjust to stay on track.

 This strategy does not stop at a tax bracket or IRMAA threshold. Taxes and IRMAA are still calculated in every year of the projection, but they do not limit the conversion amount. To target a specific bracket or threshold instead, use **Fill a Tax Bracket or IRMAA Threshold**.

As with the rest of the Roth Projection Tool, taxes in this calculation are federal only. State taxes are not included.

#### **Married Households**

For married households, conversions come from the older spouse's tax-deferred accounts first, and the younger spouse's accounts cover any remainder. After the first spouse's death, the projection switches to the Single filing status and the deceased spouse's tax-deferred accounts are no longer used.

---

### **Setting Up the Calculation**

The **Level Distributions Using Roth Conversions** dialog opens with the description "Spread a set dollar amount of Roth conversions evenly across a range of years."

![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Oct-23-2026-05-57-12-4019-PM.png?width=318&height=472&name=undefined-Oct-23-2026-05-57-12-4019-PM.png)

#### **Step 1: Enter the Amount**

Enter the total dollar amount to draw down in the **Amount to Empty From Tax Deferred** field. The amount must be greater than zero.

To draw down the client's entire tax-deferred balance, check **Convert all**. This fills in the projected combined tax-deferred balance at the first year of conversion. The checkbox label shows that balance, and the checkbox is unavailable when the balance is $0.

#### **Step 2: Choose the Conversion Years**

Set the **First Year of Conversion** and **Last Year of Conversion**.

| **Field** | **Default** | **Rules** |
| --- | --- | --- |
| First Year of Conversion | The projection's start year | Cannot be earlier than the projection's start year |
| Last Year of Conversion | Ten years after the first year | Must be the same as or later than the first year |

Both the first and last years are included in the range, which can cover up to 50 years. The range must also end before the projection does. If the client's assets run out or both spouses pass away before the last year of conversion, the calculation cannot run.

#### **Step 3: Clear Existing Conversions (Optional)**

Check **Clear all existing Roth conversions before running analysis** to calculate the strategy as if no Roth conversions had been entered yet. Nothing is deleted until the results are applied. This option is off by default each time the dialog opens, and is available only on standalone Roth projections.

#### **Step 4: Review and Calculate**

As the fields are filled in, a summary sentence at the bottom of the dialog shows the result, such as "Distribute about $61,000 per year for 11 years, assuming an 8% rate of return for the tax deferred assets."

Click **Calculate** to see the year-by-year results.

---

### **Reviewing the Results**

The results window shows each year's distribution and the Roth conversion it funds. A note at the top restates the amount, the years, and the rate of return used. The rate of return can be changed in the Control Panel.

![](https://help.holistiplan.com/hs-fs/hubfs/undefined-Oct-23-2026-05-58-12-6712-PM.png?width=412&height=428&name=undefined-Oct-23-2026-05-58-12-6712-PM.png)

| **Column** | **What It Shows** |
| --- | --- |
| Year | The conversion year |
| Roth Conversion | The amount converted to Roth that year |
| Other Distributions | RMDs, QCDs, distributions for spending, and other planned tax-deferred distributions |
| Distributions to Pay Taxes | The portion of the conversion's taxes paid from tax-deferred assets |
| Total | The year's total distribution from tax-deferred assets |

Below the table, **Total out of tax deferred assets** and **Total converted to Roth** summarize the full range.

The results window may also display one of these messages:

- **Clearing existing conversions:** If **Clear all existing Roth conversions before running analysis** was checked, a warning lists how many existing Roth conversion entries will be deleted when the results are applied. This cannot be undone.
- **Shortfall:** If the tax-deferred balance can't cover the full amount, a message shows how much could not be distributed and the year the shortfall starts. The results can still be applied.
- **No conversion room:** If required and planned distributions already meet the target in every year, a message indicates there is nothing to apply, and **Apply Conversions** is unavailable.
  
  ---
  
  ### **Applying the Conversions**
  
  Click **Apply Conversions** to save the yearly Roth conversion amounts to the projection. Holistiplan also adds a $0 conversion in the year after the last conversion year, so the final amount does not carry forward into later years.
  
  Once applied, the Roth Projection screen and its graphs update to reflect the new conversions.
  
  Applied conversions appear in the projection the same way as manually entered conversions, and can be reviewed and edited afterward.
  
  ### **Example Workflow: Drawing Down an IRA Before RMDs**
  
    1. Open the client's standalone Roth projection.
    2. Confirm the **tax deferred assets rate of return** in the Control Panel.
    3. Click **Level Distributions Using Roth Conversions**.
    4. Enter "750000" in **Amount to Empty From Tax Deferred**.
    5. Set **First Year of Conversion** to the client's first year of retirement and **Last Year of Conversion** to the year before RMDs begin.
    6. Check **Clear all existing Roth conversions before running analysis** to start from a clean slate.
    7. Click **Calculate** and review the yearly Roth conversions, taxes paid from tax-deferred assets, and totals.
    8. Click **Apply Conversions** to save the schedule to the projection.
    9. Compare the projection's results against a bracket-based strategy using **Compare All Brackets**.

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