Roth Ira Conversion Calculator
Estimate the tax impact and future value of converting a Traditional IRA to a Roth IRA.
Published by:
isCalculator Editorial Team
Was this calculator helpful?
How to use this tool?
How to Use the Roth IRA Conversion Calculator
This calculator compares the after-tax future value of converting your Traditional IRA to a Roth IRA versus keeping it in a Traditional IRA.
- Enter your current Traditional IRA balance in dollars (e.g., 100000).
- Enter your marginal tax rate as a percentage (e.g., 24 for 24%). This is the tax rate you pay on additional income.
- Enter the expected annual growth rate as a percentage (e.g., 7 for 7%).
- Enter the number of years until retirement (e.g., 20).
- Click Calculate.
Results show:
- Future value of the Roth IRA (tax-free withdrawals).
- Future value of the Traditional IRA after taxes are paid on withdrawal.
- The difference between the two, with a recommendation on which option yields more after-tax value.
Tip: All inputs must be non-negative numbers. The tax rate must be between 0 and 100.
Previous Results
| Result | Inputs | Date |
|---|
Frequently Asked Questions
A Roth IRA conversion is the process of transferring funds from a Traditional IRA (or other pre-tax retirement account) to a Roth IRA. You pay income tax on the converted amount in the year of conversion, but future qualified withdrawals are tax-free.
The tax is calculated by multiplying the converted amount by your marginal income tax rate. For example, converting $100,000 at a 24% tax rate results in a tax bill of $24,000.
Not necessarily. It depends on your current tax rate vs. your expected future tax rate. If you expect to be in a higher tax bracket in retirement, converting may be beneficial. Conversely, if your future tax rate is lower, it may be better to keep funds in a Traditional IRA.
