Analyze your retirement assets across taxable, tax-deferred, and tax-free buckets

The Tax Diversification Scorecard helps analyze how your retirement assets are distributed across taxable, tax-deferred, and tax-free accounts. By highlighting concentration risks and imbalances, it provides insight into how taxes may impact future income flexibility and planning opportunities—supporting more intentional, tax-aware retirement decisions.

⚠️ Educational Tool Disclaimer

This tool provides educational analysis only and is not tax or investment advice. Tax diversification scores are based on simplified assumptions and general principles. Optimal asset location depends on your complete financial picture, tax situation, retirement timeline, and estate planning goals. This tool does not account for state taxes, changing tax laws, or individual circumstances. Consult with qualified tax and financial professionals before making asset allocation decisions.

Your Asset Allocation

Taxable Accounts

Brokerage accounts, savings, CDs - taxed annually on interest, dividends, capital gains

$

Brokerage accounts, individual stocks/bonds, savings accounts

Tax-Deferred Accounts

Traditional IRAs, 401(k)s, 403(b)s - tax-deferred growth, taxed as ordinary income on withdrawal

$

Traditional IRA, 401(k), 403(b), 457, SEP-IRA, SIMPLE IRA

Tax-Free Accounts

Roth IRAs, Roth 401(k)s, HSAs - tax-free growth and qualified withdrawals

$

Roth IRA, Roth 401(k), HSA (for qualified medical expenses)

Understanding Tax Diversification

Why Tax Diversification Matters

Tax diversification provides flexibility to control your tax liability in retirement. By having assets in all three buckets, you can strategically choose which accounts to draw from based on your annual tax situation.

The Three Tax Buckets

Taxable: Flexible access, capital gains rates, 0% bracket opportunities.
Tax-Deferred: Tax-deductible contributions, RMDs required, ordinary income rates.
Tax-Free: No RMDs, tax-free growth, estate planning benefits.

Ideal Diversification

While optimal ratios vary by individual, a balanced approach might include 20-30% taxable, 40-50% tax-deferred, and 20-30% tax-free. This provides withdrawal flexibility and tax planning opportunities throughout retirement.

Strategic Benefits

Tax diversification allows you to manage tax brackets, minimize IRMAA surcharges, optimize Social Security taxation, fill lower brackets strategically, and maintain flexibility for unexpected expenses or opportunities.

Roth Conversions: If you're over-concentrated in tax-deferred accounts, strategic Roth conversions in lower-income years can improve your tax diversification before RMDs begin.

Your Asset Distribution

Need Help Optimizing Your Tax Strategy?

Tax diversification is a key component of comprehensive retirement planning. Let's discuss strategies to optimize your asset location and minimize lifetime tax liability.

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Long Financial Services | Educational Tool

This scorecard provides educational analysis of tax diversification for general guidance only. Optimal asset location strategies depend on your complete financial picture, including current and projected income, tax brackets, state taxes, estate planning goals, and retirement timeline. This tool does not account for individual circumstances, changing tax laws, or specific tax planning strategies. Consult with qualified tax and financial professionals to develop a comprehensive tax-efficient retirement strategy.

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