MaxiFi Claims $444,164 Lifetime Tax Savings by Optimizing Roth Conversions and Social Security
Updated
Updated · larrykotlikoff.substack.com · May 28
MaxiFi Claims $444,164 Lifetime Tax Savings by Optimizing Roth Conversions and Social Security
1 articles · Updated · larrykotlikoff.substack.com · May 28
$444,164 in added lifetime discretionary spending and tax savings came from jointly optimizing Roth conversions and Social Security for a hypothetical 62-year-old retiree, MaxiFi said.
The software argues the gain comes from global optimization rather than the common “fill the tax bracket” approach, which can miss Social Security taxation, Medicare IRMAA surcharges and state taxes.
In MaxiFi’s example, delaying Social Security to age 70 alone added $153,059, while combining that choice with Roth conversions lifted savings to $444,164 versus smaller gains under bracket-filling strategies.
The report says conventional Wall Street planning and generic AI advice can materially understate risks or leave money on the table because Roth conversion timing is a non-linear lifetime tax problem.
How can optimizing Roth conversions and Social Security together add over $400,000 to your retirement funds?
Is the 'fill the bracket' Roth strategy now a costly trap under the new 2025 tax law?