Important disclaimers — please read before continuing
Puerto Rico Retirement Planner · Required acknowledgement
LENGUAJE
⚠️
This tool is not financial advice. The projections, charts, and numbers shown are for exploration and educational purposes only. They do not constitute professional financial, tax, or investment advice of any kind.
B3 — pre-tax, grows only→ tax-free →B2 — pre-tax→ taxed on transfer →B1 — after-tax spending→ no tax →Spending
Save / Load your scenario as a .json file✓ Saved!
Target monthly take-home (after PR tax)
$84,000 / year net target
🔒 Maximum monthly spending cap
Regardless of inflation, monthly net will never exceed this.
Starting balances
✓ Already after-tax — no PR tax on this balance or daily B1 spending.
Social Security / pension — main plan
= $30,000 / year
📊 SS comparison — expected monthly benefit by claiming age
Enter your estimated monthly SS benefit at each claiming age. Used only in the SS Comparison tab — does not affect the main projection.
Find your estimates at ssa.gov/myaccount under "My Social Security". All four run the full projection with identical parameters — only the SS start age and amount differ.
💵 Fixed income — deposited directly to Bucket 1
Deposited directly into B1.
If taxable, gross amount added to year's taxable income and subject to PR brackets. If not, flows into B1 with no tax.
💰 Annuity income — guaranteed periodic payment
A fixed monthly payout deposited into B1 — e.g. a purchased annuity, structured settlement, or deferred income annuity. Set annual amount to 0 to disable.
Deposited directly into B1 each year. If taxable, the annual payout is added to that year's taxable income and subject to PR brackets alongside B2→B1 transfers. Set end age to 0 for a lifetime annuity.
📉 Age-based spending decline
Reduce the target monthly spending by a fixed percentage per year within an age range (go-go / slow-go / no-go pattern).
Spending declines compounded annually within the range, never below the ceiling. Set rate to 0 to disable.
🔒 Pre-59½ B2 → B1 transfer limit
Transfer is taxable. After the through age, normal low/target refill rules apply.
🌉 Bridge transfer rule (age 59 – SS start)
💡 Tax-optimal suggestion
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—
⏳ Optimizing…
Pre-59½ capped amount counts toward this minimum.
📉 Bear market withdrawal reduction
B1 — Cash (after-tax)
No tax on withdrawals
Low/target active only after age 59½
B2 — 60/40 (pre-tax)
Transfer to B1 is taxable that year
B3 — Aggressive (pre-tax)
B3→B2 transfer is tax-exempt
Not refilled. B3→B2 — no tax event.
🐻 Bear market & return variability
Puerto Rico income tax
✓ B1 cash — NO TAX✓ B3→B2 — NO TAX✗ B2→B1 — TAXED✗ Emergency draws — TAXED✓ SS — NO TAX (PR exempt)⚙ Fixed income — if taxable, TAXED
Taxable = B2→B1 + emergency draws + taxable fixed income − $3,500 − age-based exempt. All × 0.92 (8% credit).
Taxable income
Calculation
Rate
$0 – $9,000
$0
0%
$9,001 – $25,000
(inc − $9K) × 7%
7%
$25,001 – $41,500
$1,120 + (inc − $25K) × 14%
14%
$41,501 – $61,500
$3,430 + (inc − $41.5K) × 25%
25%
$61,501+
$8,430 + (inc − $61.5K) × 33%
33%
B2 return sequence — hover a badge to see the age ● manually edited
Click badge to edit value
B3 return sequence — hover a badge to see the age ● manually edited
End-of-year balanceSpent from B1Low levelTarget level
B2 → B1 transfers per year (taxable)
Normal refillPre-59½ cappedBridge transferRMD forced
RMD requirement — combined B2+B3 Keogh (age 75+)
Already satisfied by normal transferRMD forced extra transfer
Required Minimum Distribution (RMD) starts at age 75. Calculated as prior year-end B2+B3 balance ÷ IRS Uniform Lifetime Table divisor. If the normal B2→B1 transfer already covers the RMD, no extra action is taken. If short, B3 is moved to B2 tax-free first, then the gap is transferred B2→B1 (taxable). B2 is then refilled to its low level from B3 if needed.
IRMAA at age 65+ is based on federal MAGI from 2 years prior (two-year lookback). Ages 63–64 are the critical window — they set your first two years of Medicare premiums. Federal MAGI = B2→B1 + emergency draws + taxable fixed income + taxable annuity + 85% of SS. No PR deductions apply.
Federal MAGI by component vs $109K IRMAA threshold
Tooltip shows total federal MAGI and the IRMAA tier it lands in. The stacked bars show which income component would push you over the threshold. Years where the total bar exceeds the dashed line trigger a surcharge two years later.
Age
Yr
Base/mo
Decline
Adj.
Final/mo
B2 ret.
B3 ret.
B3 bal.
B3→B2
B2 bal.
B2→B1 rule
B2→B1
B1 bal.
B1 spent
Fixed inc.
Annuity
Emerg.
SS
From buckets
Total spent
W/D rate
Taxable
PR tax
Eff.%
B1 total W/D
Net/mo
Shortfall
RMD
Fed MAGI
IRMAA tier
IRMAA/yr
Table
Uses your current projection as the baseline. The annuity cost is deducted from B3 at the start age, and the monthly payout deposits into B1 each year as taxable income — subject to PR tax alongside B2→B1 transfers.
Cost: $200,000
Income: $1,200/mo
Start age: 65
Duration: 10 yrs
Total annuity received
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Net vs cost
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Breakeven age
—
Portfolio at plan end
—
Current plan (B1+B2+B3)With annuity
B3 is reduced by annuity cost at start age. Annuity income is taxable in PR brackets.
Guardrails strategy: Withdraw 6% of the portfolio ceiling each year. When the portfolio rises above the ceiling, ratchet up — the new value becomes the new ceiling. When it falls 10% below the ceiling drop to 5%. When it falls 20% below, drop to 4% and hold until recovery.
Rate: 6.0%
Rate: 5.0%
Rate: 4.0%
Avg withdrawal rate
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Current ceiling
—
Ceiling ratchets
—
Portfolio at plan end
—
Current plan (B1+B2+B3)Rails strategyCeiling−10% ceiling−20% ceiling
Monthly withdrawal — Rails vs from buckets (current plan)
6%— portfolio at or above ceiling5%— portfolio 10%–20% below ceiling4%— portfolio >20% below ceiling (hold until recovery)
