Riley’s income, in your plan
Riley works outside medicine. Salary, bonus and stock run through the same tax, loan and retirement math as Alex’s, so the household plan is right for both of you.
This is a sample household. Add your partner in setup to see yours.
Riley’s work
Product manager · tech company
Nonprofit or government makes Riley’s own loans PSLF-eligible
Income this year
| Type | Amount | How it’s withheld | Withheld |
|---|---|---|---|
| Salary | $220,000 | Regular paycheck, W-4 on file | On track |
| Annual bonus | $30,000 | Flat 22% supplemental rate | $6,600 |
| RSU vests Sell-to-cover | $150,000 | Flat 22% supplemental rate | $33,000 |
| Total | $400,000 |
Bonus and RSUs are taxed like salary, but employers withhold only 22% on them. Your household’s top rate is 35%.
Riley’s accounts and loans
- 401(k)
- $24,500 pre-tax Plan allows after-tax contributions and in-plan Roth conversion: mega backdoor possible
- Rollover IRA
- $85,000 pre-tax Makes Riley’s backdoor Roth partly taxable. See the alert.
- Roth IRA
- $7,500 backdoor, planned for this year
- HSA
- Covered on Alex’s family HSA One family limit, $8,750
- Student loans
- None
Withholding gap
You’re on track to owe about $21,500 in April
- Tax on bonus + RSUs at your rates
- $59,793
- Withheld at 22%
- −$39,600
- Additional Medicare not withheld Each employer only withholds above $200,000
- $1,350
- Short
- $21,543
To avoid a penalty, withholding plus estimates must reach 110% of last year’s tax (if your AGI was over $150,000) or 90% of this year’s. Extra W-4 withholding counts as paid evenly all year, so it still works late in the year. Even quarterly estimates would be about $5,386.
Backdoor Roth
Riley’s $85,000 rollover IRA makes 92% of the $7,500 conversion taxable, about $2,412 at 35%. Roll the IRA into Riley’s 401(k) before Dec 31 if the plan accepts roll-ins. Never move 401(k) money the other way.
Household
- Combined gross
- $700,000
- AGI
- $617,750
- Federal income tax
- $142,481
- FICA, both of you
- $36,872
- Top federal bracket
- 35%
- Child tax credit
- $0 · phased out
If Alex takes a job in another city
Every Compare scenario asks what happens to Riley’s pay. A move that costs Riley’s job is often the biggest number in the whole comparison.
Open Compare →Protecting Riley’s income
Group disability usually pays at most $10,000 a month and doesn’t count bonus or RSUs, so it would replace about 30% of Riley’s $400,000. The gap belongs in the household insurance plan.
Check coverage for both of you →Stock-option strategy (ISOs, AMT, 83(b)) isn’t modeled: talk to a CPA. Educational, not tax advice.