Roth Conversion Calculator
Analyze the tax impact of converting your Traditional IRA or 401(k) to a Roth IRA. See break-even year, future value comparison, and Medicare IRMAA warnings for 2026.
Quick Answer
When does a Roth conversion make sense?
A Roth conversion is beneficial when your current tax rate is lower than your expected retirement rate. You pay taxes now at your current rate, then enjoy tax-free growth and withdrawals. Key scenarios: temporarily low income year, early retirement, or if you want to reduce future RMDs.
Calculate your conversion tax impact and break-even year below.
Key Takeaways
- Roth conversions are taxable events - the converted amount is added to your income for the year
- The 5-year rule applies to each conversion: wait 5 years or until age 59.5 to avoid penalties on converted amounts
- Consider multi-year conversions to stay in lower tax brackets instead of converting all at once
- Ages 63+: Large conversions can trigger Medicare IRMAA surcharges 2 years later
- Since 2018, Roth conversions cannot be undone (no recharacterization) - plan carefully
Conversion Projections
Roth vs Traditional Projection
How This Calculator Works
1. Enter Account & Income
Input your Traditional IRA/401(k) balance, conversion amount, current income, and expected retirement income to model your tax situation.
2. See Tax Impact
View the federal and state tax on your conversion, your effective rate, and how the conversion affects your tax bracket.
3. Compare Scenarios
See when Roth breaks even versus Traditional, projected values at retirement, and whether conversion makes financial sense.
Understanding Roth Conversions
A Roth conversion moves money from a Traditional IRA or 401(k) to a Roth IRA. You pay taxes on the converted amount now, but qualified withdrawals from Roth accounts are completely tax-free in retirement.
When Conversion Makes Sense
- You expect higher tax rates in retirement
- You're in a temporarily low income year
- You want to reduce future RMD obligations
- You want tax-free inheritance for beneficiaries
- You have cash outside retirement to pay the tax
Important Considerations
- 5-year rule: Each conversion has its own 5-year clock
- No undo: Since 2018, conversions cannot be reversed
- IRMAA: Large conversions can increase Medicare premiums
- Bracket jumping: Consider partial conversions over multiple years
Frequently Asked Questions
A Roth conversion is when you move money from a Traditional IRA or 401(k) to a Roth IRA. You pay income taxes on the converted amount now, but qualified withdrawals in retirement are tax-free.
Yes, the converted amount is added to your taxable income for the year. You pay federal and state income taxes on the conversion. The tax is calculated at your marginal rate, which may push you into a higher bracket.
The break-even point depends on your current vs. future tax rates and investment returns. If your tax rate in retirement is expected to be higher than now, a Roth conversion may be immediately beneficial. Use our calculator to see your specific break-even year.
Each Roth conversion has its own 5-year clock. If you withdraw converted funds before 5 years AND before age 59.5, you may owe a 10% early withdrawal penalty on the converted amount (the tax portion was already paid).
No, as of 2018, Roth conversions can no longer be undone (recharacterized). Before converting, carefully consider the tax implications since the decision is permanent.
A large Roth conversion increases your MAGI, which can trigger Medicare IRMAA surcharges 2 years later. For example, a 2024 conversion affects 2026 Medicare premiums. Our calculator shows IRMAA warnings for those age 63 and older.
Converting all at once could push you into a much higher tax bracket. Consider spreading conversions over multiple years to stay in lower brackets. Our calculator shows the optimal conversion amount to stay in your current bracket.
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