This update applies only to AUM (managed brokerage) accounts. If you work primarily in annuities, your illustrations are already modeled as it should — nothing here changes for you, and you can stop reading. For everyone running managed-money conversions, here's what's new.
Say a client has $1 million in a traditional IRA under your management, and you and your client have decided you are converting $500,000 to a Roth. That's a clean, specific number — and that's exactly what RothBlueprint now shows: $500,000 converts, and the other $500,000 keeps growing as traditional.
Two account types, two natural models
"Converting $500,000" can mean two slightly different things depending on the account, and each one deserves its own model.
With an annuity, a conversion really is its own event: money moves into a new contract on day one, and that contract grows on its own from there. Modeling it as a separate, growing sub-account mirrors exactly what happens in the real world — which is why annuity illustrations are, and always have been, spot-on.
With an AUM (managed brokerage) account, the money lives in a single account. A conversion is a transaction within it: a specific dollar amount moves from the traditional side to the Roth side, and everything you didn't convert keeps compounding as traditional.
What's new for AUM accounts
Until now, AUM conversions used the same proven approach as annuities, tracking the converted dollars in their own sub-account. It worked well — and we've now refined it to fit managed money even more naturally, since those dollars all live in one place. The result is exactly what you'd expect:
- The amount you enter is the amount that converts — enter $500,000 and exactly $500,000 lands in the Roth.
- Growth on the unconverted balance stays traditional — the remaining $500,000 keeps compounding right where it is, in the traditional IRA.
Joint households, handled per spouse
When you're converting for a couple, each spouse's amount is delivered precisely. Ask to convert $400,000 from his IRA and $150,000 from hers, and that's exactly what the plan reflects — $400,000 and $150,000, with no blending and no rounding surprises.
What you'll see in the plan
- "Conversion Amount" matches your request — it shows the figure you entered.
- The remaining-balance section reads "Remaining (IRA)" and shows the client's actual traditional IRA balance over time.
- The separate "Stays in IRA" view goes away for AUM, because there's no side bucket to track — there's just the one real IRA.
Why it matters
When the plan shows the exact amount you converted, everything downstream gets easier: the conversation with your client matches the paperwork, your tax-bracket targeting reflects real dollars, and year-over-year balances reconcile cleanly. "$500,000" means $500,000 — on the screen, in the PDF, and in the client's account.
