Calculator | Dynamic planning tool
Roth Conversion Calculator
Model a conversion before deciding whether paying tax now could make sense later.
This calculator estimates
- Roth conversion path
- Traditional IRA path
- Estimated advantage
Enter a few step-by-step details
Compare Roth conversion vs. traditional IRA
This estimates the tax due today, projected Roth value, and the after-tax value of staying traditional and investing annual tax savings.
How is the conversion tax paid?
30 year projection
Estimated Roth advantage
Educational estimate only. Roth eligibility, contribution limits, state taxes, RMDs, Medicare IRMAA, and bracket stacking can materially change the answer.
How to use this estimate
A conversion is a tax-timing decision
A Roth conversion typically creates taxable income in the year of conversion. The benefit depends on your current bracket, expected retirement bracket, time horizon, return assumption, and whether you can pay the tax from outside cash.
Watch bracket stacking
Converting too much in one year can push other income into a higher bracket. Partial conversions may be easier to manage.
Roth conversion
A Roth conversion moves pre-tax retirement money into a Roth account. The converted amount is usually taxable now, but qualified Roth withdrawals can be tax-free later.
Roth vs. Traditional
The choice often comes down to tax timing: pay tax now for Roth treatment, or defer tax with a traditional account and pay when money comes out.
Marginal tax rate
Your marginal tax rate is the rate applied to your next dollar of taxable income. Conversions can push income into higher brackets if the amount is too large.
Questions before you use the numbers
These answers explain how to interpret the estimate and when a tax professional should review the decision with your actual numbers.
When can a Roth conversion make sense?+
A Roth conversion can make sense when you expect future tax rates to be higher, have a long investment horizon, can pay the conversion tax from outside cash, or have a temporarily low-income year. The benefit depends on taxes paid now versus taxes avoided later.
What should I consider before converting traditional IRA money to Roth?+
Consider your current marginal tax rate, expected retirement tax rate, time until withdrawals, cash available to pay the tax, Medicare premium thresholds, tax credits, state taxes, and whether a partial conversion would keep you in a preferred bracket.
Is a partial Roth conversion better than converting everything at once?+
Often, yes. A partial conversion may spread taxable income across multiple years and reduce the risk of pushing too much income into a higher bracket in one year.
How is a Roth conversion taxed?+
The pre-tax amount converted is generally included in taxable income for the year of conversion. After-tax basis, required distribution rules, and state treatment can make the calculation more complex, so the estimate should be reviewed before you act.
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