Roth IRA Conversion Calculator

Balance in Current IRA: $
Source of Taxes Due on Conversion: *   Funds outside my IRA
Funds from my IRA
Total Pre-Tax Annual Contributions $
IRA Contribution Limit: $
Years until Retirement:  
Investment Rate of Return (Yearly)  
%
Tax Bracket:
    pre-retirement:  
%
    during retirement:   %
Press the Button Below to Calculate the Comparison Values
   
If the Roth IRA has a Higher Value, Then Conversion is Beneficial
Traditional IRA: $
Roth IRA: $
* If you select funds outside your IRA, an amount equal to the tax due is added to the non-sheltered account corresponding to the regular IRA. In other words, if your rollover amount is $100,000 and you pay the tax on conversion from other funds, the Traditional IRA amount is equal to the $100,000 plus the amount of tax liability created by the conversion. Payment of tax due upon conversion with funds from the IRA may result in a 10% tax penalty. If a taxpayer meets the eligibility requirements for converting a Traditional IRA into a Roth IRA, the question remains, will the conversion be beneficial. In order to make this determination, estimates must be made for certain parameters. These parameters include the number of years to retirement, the tax rate at retirement, and the estimated IRA contributions during the pre-retirement period.
The following calculator will help you determine whether conversion from an existing IRA into a Roth IRA is beneficial. The results show the post-tax income resulting from each IRA if you were to withdraw everything your first year in retirement. Please be advised that there are many aspects of a taxpayer's financial situation that must be analyzed before a conversion decision can be reached. In general, conversion is most beneficial if a taxpayer's current tax bracket is lower than the taxpayer's bracket when the IRA funds are withdrawn. The results provided by this calculator are intended for illustrative and hypothetical purposes only.