Enter spending, gifts and life insurance premiums that will be made out of the IRA or Roth IRA. Use "spending" to illustrate funds the client would use for lifestyle expenses in retirement. "Gifts" are assumed to be used for annual exclusion gifts, but no gift tax consequences are calculated in this analysis. Finally, premiums allow you to illustrate the qualified plan paying premiums on a proposed new life insurance policy. This policy could provide the liquidity needed to pay either conversion taxes on a Roth conversion or pay estate or IRD taxes so that the IRA or Roth IRA do not need to be liquidated to pay the taxes.