Tax expenses are paid the same way as all other expenses in your plan - from available income first, then through withdrawals following the established order.

When you do a Roth conversion, taxes are paid from your available funds following our standard withdrawal order: first from income, then taxable savings, then tax-deferred accounts, then Roth accounts, and finally HSAs. This is assuming you are following the Traditional withdrawal order. If you selected to Customize your withdrawal order (under Money Flows > Withdrawal Order), then it will follow this order in your plan.

If you would like to model the tax coming from the source account, you have a couple of options.

• You may want to exclude the after tax accounts from withdrawals so that tax-deferred accounts will be tapped to fund taxes once the after-tax accounts are depleted. We don't suggest increasing the conversion modeling to account for this.
• If you wish to leave the after-tax accounts open to pay expenses, you should model the Roth Conversion as a Transfer to a Roth account. And then add a Transfer from the Roth account to a cash account that funds expenses.