Roth Conversion Calculator
Calculate Roth conversion tax implications, future growth, and optimal conversion strategies. Compare Traditional IRA vs Roth IRA scenarios.
Step 1: Current Financial Situation
About Roth Conversions
A Roth IRA conversion moves retirement savings from a Traditional IRA to a Roth IRA. You pay taxes now but enjoy tax-free growth and withdrawals in retirement.
Step 2: Conversion Strategy
Tax Implications
Converting to a Roth IRA creates a taxable event. The converted amount is added to your taxable income for the year. Consider converting during low-income years to minimize taxes.
Roth Conversion Analysis Results
Total Tax Liability
Tax Implications Analysis
Tax Planning Strategy
Converting during lower-income years can reduce your tax burden. Consider spreading conversions over multiple years to stay in lower tax brackets and avoid Medicare surcharges.
| Year | Conversion Amount | Tax Bracket | Tax Owed | Remaining Traditional IRA |
|---|---|---|---|---|
| 2024 | $50,000 | 22% | $11,000 | $200,000 |
| 2025 | $40,000 | 22% | $8,800 | $160,000 |
| 2026 | $40,000 | 22% | $8,800 | $120,000 |
Traditional vs Roth Growth Comparison
Conversion Formula
Future Value Calculation
Future Value = Principal × (1 + Annual Return)^Years. Roth IRA: Tax-free growth. Traditional IRA: Tax-deferred growth (taxed upon withdrawal at retirement tax rate).
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