Roth Conversion Calculator
Analyze the benefits of converting your Traditional IRA to a Roth IRA
Tax on Conversion
$0
Net Conversion
$20,000
Estimated Benefit
$0
Projected Account Values at Retirement
Taxable Event
A Roth conversion is a taxable event. You'll pay income tax on the converted amount in the year of conversion at your current tax rate.
Future Tax Rates
Roth conversions are most beneficial if you expect to be in a higher tax bracket in retirement than you are now, or if tax rates increase in the future.
Five-Year Rule
Converted amounts must remain in the Roth IRA for five years before they can be withdrawn tax-free and penalty-free, even if you're over 59½.
No Income Limits
There are no income limits for Roth conversions, making them an excellent strategy for high earners who can't contribute directly to a Roth IRA.
Estate Planning Benefits
Roth IRAs can be a powerful estate planning tool, as beneficiaries can inherit them tax-free and they're not subject to Required Minimum Distributions during the owner's lifetime.
Partial Conversions
You don't have to convert your entire Traditional IRA at once. Consider converting smaller amounts over several years to manage your tax burden.