Roth Conversion Calculator
See the tax impact of converting Traditional IRA or 401(k) funds to Roth. Compare convert vs. don't convert scenarios, find your optimal conversion amount, and see how it affects future RMDs.
Personal Details
Account Balances
Conversion Strategy
Tax Information
Roth Conversion Score
This conversion strategy is highly favorable — you'll pay less tax now than you'd pay later.
Tax on Conversion
$88,050
Net Lifetime Benefit
+$1,674,350
Total Converted
$500,000
over 10 years
Tax Cost
$88,050
17.6% effective rate
Net Benefit
+$1,674,350
by age 90
RMD Reduction
$45,114/yr
at age 75
Convert vs. Don't Convert
Total after-tax portfolio value over time
Account Composition at Retirement
Traditional vs. Roth split — conversion shifts funds to tax-free
With Conversion
Total
$1,212,911
Roth (tax-free)
78%$951,408/yr
Traditional (taxed)
22%$261,503/yr
Without Conversion
Total
$1,212,911
Roth (tax-free)
13%$160,485/yr
Traditional (taxed)
87%$1,052,426/yr
Tax Impact Summary
What you pay now vs. what you save later
Tax Paid Now
$88,050
22% marginal rate
Future RMD Tax Savings
$124,244
from reduced RMDs
Net Lifetime Benefit
$1,674,350
after-tax value at 90
Traditional vs. Roth Balance (Convert Scenario)
How the conversion shifts your balance from taxable to tax-free
Year-by-Year Breakdown
Conversion schedule and balance comparison
| Age | Convert | Tax | Trad Bal | Roth Bal | Total | No-Conv Total | RMD |
|---|---|---|---|---|---|---|---|
| 55 | $50,000 | -$8,805 | $481,500 | $160,500 | $642,000 | $642,000 | - |
| 60 | $50,000 | -$8,805 | $367,664 | $532,774 | $900,438 | $900,438 | - |
| 65 | - | - | $261,503 | $951,408 | $1,212,911 | $1,212,911 | - |
| 70 | - | - | $366,772 | $1,046,862 | $1,413,634 | $1,413,634 | - |
| 75 | - | - | $493,506 | $1,180,741 | $1,674,246 | $1,624,216 | $20,911 |
| 80 | - | - | $547,971 | $1,368,513 | $1,916,484 | $1,543,675 | $28,540 |
| 85 | - | - | $573,615 | $1,631,873 | $2,205,488 | $1,362,762 | $38,241 |
| 90 | - | - | $549,066 | $2,001,250 | $2,550,316 | $1,060,882 | $49,024 |
Personalized Insights
Actionable recommendations based on your numbers
Conversion saves $1,674,350 over your lifetime
After accounting for the $88,050 tax cost now, converting to Roth results in $1,674,350 more in after-tax wealth by age 90.
22% bracket — good conversion opportunity
Converting at 22% is generally favorable, especially if you expect to be in a similar or higher bracket in retirement.
Roth conversion ladder: $50,000/year for 10 years
Spreading conversions over 10 years keeps each year's conversion in a lower bracket. Total converted: $500,000 with $88,050 total tax (17.6% effective rate).
RMDs reduced by $45,114/year at age 75
Converting reduces your Traditional IRA balance, which lowers future RMDs. Less forced withdrawals = less taxable income = potential savings on Medicare premiums (IRMAA) and Social Security taxation.
Paying taxes from outside funds — optimal approach
By paying the $88,050 conversion tax from non-retirement funds, you preserve the full converted amount in your Roth for tax-free growth. This maximizes the benefit.
5-year rule for Roth conversions
Each conversion has its own 5-year clock. Converted amounts withdrawn within 5 years before age 59½ may incur a 10% penalty (though the tax is already paid). Your first conversion's 5-year window ends in 2031.
Pro-rata rule applies to conversions
If you have any non-deductible (after-tax) contributions in your Traditional IRA, the IRS applies the pro-rata rule — you can't convert only the after-tax portion. The entire IRA balance is considered.
Roth conversions benefit your heirs
Inherited Roth IRAs provide tax-free income to beneficiaries (subject to the 10-year rule). Inherited Traditional IRAs are fully taxable. Converting now shifts the tax burden from your heirs to you at potentially lower rates.
Related Retirement Calculators
Explore the next planning questions readers usually compare with this calculator.