Roth IRA Conversion Calculator

Enter the amount you plan to convert and your total traditional IRA balance. Add your current age, planned retirement age, current federal tax bracket, expected retirement tax bracket, state tax rate, and annual investment return.

Choose whether you will pay conversion taxes from outside the retirement account. Paying from outside generally leaves the full conversion amount invested in the Roth account; using retirement funds to pay the tax reduces the amount transferred. If you plan to convert gradually, enter an annual conversion amount. The calculator models a fixed annual amount, but does not determine the most tax-efficient amount for every year.

Check the calculator's assumptions against your actual situation. A marginal bracket is not the same as an effective tax rate, and a flat percentage estimate cannot fully capture tax brackets, deductions, credits, or state-specific rules. The IRS explains that a conversion is generally taxable in its traditional and Roth IRA guidance.

The defaults are a $50,000 conversion from a $200,000 traditional IRA at age 45, with retirement at 65. The federal tax-bracket input is 24%, state tax is 5%, the retirement bracket is 22%, and the assumed annual return is 7%. The calculator assumes conversion tax is paid from outside the account.

First, it combines the current federal and state rates:

24% + 5% = 29%

Then it estimates the tax cost:

$50,000 × 29% = $14,500

Because the tax is assumed to be paid from outside the IRA, the full $50,000 enters the Roth. The remaining traditional IRA balance is $200,000 − $50,000 = $150,000. The calculator reports a projected Roth balance of $193,484 at age 65. It reports the no-conversion traditional balance as $773,937. The comparison also shows a $617,215 after-tax converted-scenario value and a $564,974 no-conversion after-tax value at age 65.

The calculator reports $62,689 in tax savings in retirement and a break-even age of 46. Its tax-savings result is based on a simplified 4% withdrawal assumption and a 30-year multiplier; it is not a forecast of the actual lifetime tax bill. The break-even age is the first modeled age when the calculator's after-tax converted scenario exceeds its no-conversion scenario. It does not mean the upfront $14,500 tax is literally recovered as cash at that age.

Conversion amount and existing IRA balance

The conversion amount is the amount moved into the Roth. It is limited by the available eligible account balance, but the tax impact depends on the amount treated as taxable income, other income that year, deductions, and the applicable tax rules.

Traditional IRA balances may include both pre-tax and after-tax contributions. If you have nondeductible basis, the taxable share of a conversion is generally determined using the pro-rata rules across applicable traditional, SEP, and SIMPLE IRAs. This calculator treats the conversion as a simple amount and does not ask for basis. Use a tax-specific estimate such as the Roth IRA Tax Calculator and review the IRS's Form 8606 instructions.

Current and retirement tax rates

The current tax bracket estimates the federal tax rate on the conversion; the state tax rate is added to it. This produces a flat combined rate, which may not equal the actual marginal tax on the full conversion. A large conversion can push some income into a higher federal bracket or affect other tax calculations.

The retirement tax bracket estimates the rate applied to traditional withdrawals in the future. Future income may include wages, pension, Social Security, and required minimum distributions. Tax rules and your filing status could change before retirement. Compare more than one rate assumption rather than treating a single bracket as certain.

Paying the tax from outside or inside the account

If you pay tax from outside the retirement account, the converted amount can remain invested in the Roth, but the tax payment reduces your other assets. The calculator's outside-tax assumption also compares the future value of that tax money under a modeled growth and capital-gains assumption.

If you withhold tax from the retirement account, less money reaches the Roth. If you are under age 59½, the amount withheld may also be treated as a distribution subject to additional tax unless an exception applies. Consult the plan or IRA custodian before choosing withholding. The 401(k)-to-Roth IRA Conversion Calculator is relevant when the source is an employer plan.

Annual conversion amount

An annual conversion amount allows a multi-year conversion strategy. Converting in installments can spread taxable income across years, but the calculator does not optimize the amount against tax-bracket ceilings, Medicare income-related premiums, health-insurance subsidies, state taxes, or other income thresholds. A Roth conversion ladder guide explains one timing strategy, but eligibility and tax consequences depend on individual facts.

The core estimate begins with a combined rate and applies it to the conversion amount. The account-growth comparison then compounds Roth and traditional balances under the same annual return.

combined current tax rate = (current federal tax rate + state tax rate) ÷ 100

estimated conversion tax = conversion amount × combined current tax rate

Roth starting balance = conversion amount − tax paid from the retirement account

future balance = starting balance × (1 + annual return)^years

For the default example, the first calculation is (24 + 5) ÷ 100 = 0.29. The tax estimate is $50,000 × 0.29 = $14,500. Since the tax is paid outside the account, the Roth starting balance remains $50,000. The calculator then applies the 7% return over the 20 years from age 45 to 65, while it also projects the remaining traditional balance.

This simplified formula does not calculate the exact federal tax return. It does not model every tax bracket step, deductions, credits, basis, or changes in state law.

When a conversion may be attractive

A conversion may be worth analyzing when you expect a lower tax rate now than later, have money outside the IRA to pay the tax, or want to reduce future taxable distributions. It may also diversify the tax treatment of retirement savings. That does not make conversion automatically beneficial: the tax paid now has an opportunity cost, and future tax rates are uncertain.

Compare the Roth outcome with a traditional account on an equal after-tax basis. A common misconception is that a Roth account always wins because qualified withdrawals are tax-free. The tax paid to convert could instead have remained invested outside the account; the calculator attempts a simplified comparison, but actual investment taxes, asset allocation, and use of tax savings can change the result.

When a conversion may be costly

A conversion can raise taxable income in the conversion year. That may move part of your income into a higher bracket or affect other income-related thresholds. Converting too much in one year can therefore produce a larger effective tax cost than applying one flat rate to the whole amount.

Conversions are generally difficult or impossible to undo after the applicable recharacterization deadline. Estimate the tax bill before initiating a transaction and keep cash available for it. The Roth IRA Conversion Calculator is one scenario tool; compare it with a Roth IRA growth projection and the traditional IRA calculator.

RMDs, beneficiaries, and account rules

A Roth IRA owner generally has no lifetime RMDs, but traditional IRAs are generally subject to required minimum distributions beginning at age 73 under current law. The SECURE 2.0 Act raises the starting age to 75 in 2033 for affected people. Conversion does not eliminate all distribution rules: Roth beneficiaries may have required distribution deadlines. See the IRS explanation of required minimum distributions and the Inherited Roth IRA RMD Calculator.

The following scenarios illustrate decisions to test. Only the first row uses the calculator's supplied result; the other rows describe expected directions rather than uncomputed dollar outputs.

A smaller conversion can help manage the current-year tax impact but leaves more money in the traditional account. A larger conversion can move more future growth into Roth treatment but may raise current taxable income. Test the specific amount that fits your tax plan.

1. Confirm the source account balance, taxable and nontaxable basis, and whether the pro-rata rule applies.
2. Estimate the conversion's effect on your full tax return, not only the nominal bracket.
3. Decide whether conversion tax will come from cash outside the account or from the retirement funds.
4. Compare one-year and multi-year conversions under several return and tax-rate assumptions.
5. Confirm the transaction and withholding details with the custodian and check current IRS rules.

For broader tax comparisons, read Roth IRA versus traditional IRA: which saves more taxes? and estimate withdrawals with the Roth IRA Withdrawal Calculator. For a different source account, review the 401(k)-to-Roth IRA conversion calculator.

Is a Roth conversion taxable?

Generally, the taxable portion of a conversion is included in income for the year it is completed. Nondeductible basis can affect the taxable amount, so do not assume the entire conversion is necessarily taxable or tax-free.

Does the $14,500 result include state tax?

Yes. The default model adds the 24% federal rate and 5% state rate, then applies the combined 29% to $50,000: $50,000 × 0.29 = $14,500. Your real tax may differ because the conversion can affect progressive tax brackets and other calculations.

What does a break-even age of 46 mean?

It is the first age in the modeled comparison when the converted scenario's after-tax account value exceeds the no-conversion scenario. It does not measure when you recover the tax payment in cash, and it relies on the calculator's tax and return assumptions.

Should I pay conversion tax from cash or withhold it from the IRA?

Paying from outside the account preserves more money for Roth growth, but uses cash that could have been invested or spent elsewhere. Withholding from retirement assets reduces the amount converted and may create a separate early-distribution tax issue for someone under 59½. Compare both approaches against your liquidity and tax situation.

Is converting before retirement always better?

No. A lower-income year can make conversion more attractive, but the right amount depends on your marginal tax rate, state tax, other income, basis, and future distribution needs. A conversion that pushes income into a higher bracket may cost more than expected.

Can I convert the full traditional IRA over several years?

Often, you can choose multiple conversions over time, subject to account and tax rules. Splitting conversions may spread income, but annual conversions still add taxable income. This calculator's annual-conversion feature is a simplified projection, not tax-bracket optimization.

Does a conversion avoid required minimum distributions?

A completed conversion moves the converted amount out of the traditional IRA, which can affect future RMD calculations. Traditional-account RMDs due before conversion still must be handled under applicable rules, and Roth beneficiaries may have their own distribution requirements.

Can I reverse a Roth conversion if the market falls?

Generally, completed Roth conversions cannot be recharacterized under current rules. Check current law and speak with your custodian before acting; do not rely on an old ability to undo a conversion.

The projected Roth balance is one part of the decision. Compare it with the tax paid now, the after-tax traditional balance, the opportunity cost of outside cash, and your likely retirement income. Run more than one conversion size and tax-rate scenario, then verify the result against current IRS rules before transferring funds.