Production size, tenure, and fee-based mix all affect your payout, and larger books get an additional bonus tier on top. Each variable is individually editable.
Extra credit for staying at the firm longer. Drag the slider, or type into either box \u2014 they'll stay in sync. · Auto
Extra credit for a more fee-based, advisory-heavy book. Drag the slider, or type into either box \u2014 they'll stay in sync. · Auto
This adjusts automatically based on industry-informed production ranges, but you can manually override it anytime.
Payout term and schedule shape vary by plan, and both change your numbers — a longer term means smaller checks but often a better after-tax result and a lower present value. Hand-edit any year's percentage to override the auto-calculated curve.
| Year | % of Production | Payout $ |
|---|---|---|
| Total | $0 |
Sunset payments are normally taxed as ordinary W-2 income. This toggle lets you compare that against what the same payment would look like if it were instead treated as a capital gain, the way proceeds from an actual sale of the practice are typically taxed. That treatment doesn't happen for a standard sunset payment in practice \u2014 it's included here as a side-by-side reference, not a real option to select on a sunset agreement.
| Year | Gross | Tax | Net |
|---|---|---|---|
| Total | $0 |
This calculator is a generic, illustrative model of how W2 "sunset," "senior consultant," or retirement-transition programs commonly work — not a reproduction of any single plan, and not intended to be precise. Every rate, threshold, and structural choice is editable so it can be dialed toward a specific program. Defaults blend elements from more than one documented or reported plan rather than replicating any one exactly, so total figures can exceed what a single plan's formula alone would produce, while staying below the highest documented industry figures we're aware of. Within that blend, the fee-based bonus is weighted more heavily than the large-book size bonus, reflecting how practice valuations more broadly tend to reward a fee-based, recurring-revenue mix over sheer size. This tool is built for directional accuracy across a range of real structures, not as a precise replica of any specific firm's plan — confirm the actual formula and mechanics of your specific plan before relying on these figures. It also does not model an existing recruiting or transition note balance, and it assumes the award is paid directly rather than passed through a separate production-grid rate before payout, since firms may structure this differently.
Tax treatment is genuinely uncertain and plan-specific. Standard sunset payments are modeled as W-2 ordinary income: employee-side FICA (Social Security up to the 2026 wage base of $184,500, 1.45% regular Medicare, 0.9% Additional Medicare Tax above the filing threshold), plus federal tax computed year-by-year from real 2026 brackets and the standard deduction. The Capital Gains option is included strictly as a side-by-side reference point, not a real-world alternative for a standard sunset payment \u2014 it models 2026 long-term capital gains brackets plus the 3.8% Net Investment Income Tax above the filing threshold, with no payroll tax, the way proceeds from an actual sale of a practice as a capital asset are typically taxed. State tax remains a flat, editable rate under either treatment. Present-value figures assume a constant discount rate and no reinvestment of proceeds \u2014 this is a planning aid, not a full retirement or business valuation, and doesn't account for healthcare, benefits, or Social Security timing.
Bridgemark Strategies is not a broker-dealer, RIA, law firm, or accounting firm, and this tool does not constitute investment, legal, tax, or accounting advice, nor is it affiliated with or endorsed by any specific firm. Please consult your own tax and legal professionals, and contact Bridgemark Strategies directly for a personalized review of your transition options.