Roth Conversion Calculator
Analyze the potential benefits of converting your Traditional IRA to a Roth IRA.
Conversion Details
Enter your current account balances and tax rates.
Projected Account Values at Retirement
Estimated Roth Conversion Benefit: $0
Roth Conversion Considerations
1. **Taxable Event:** A Roth conversion is a taxable event. You'll pay income tax on the converted amount in the year of conversion.
2. **Future Tax Rates:** Roth conversions are most beneficial if you expect to be in a higher tax bracket in retirement than you are now.
3. **Five-Year Rule:** Converted amounts must remain in the Roth IRA for five years before they can be withdrawn tax-free and penalty-free.
4. **Income Limits:** There are no income limits for Roth conversions, unlike direct Roth IRA contributions.
5. **Estate Planning:** Roth IRAs can be a powerful estate planning tool, as beneficiaries can inherit them tax-free.