Roth IRA Conversion Calculator — Tax Impact Analysis
Tax Cost of Conversion
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Roth Future Value (tax-free)
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Traditional Future Value (after tax)
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Net Benefit of Converting
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How This Calculator Works
A Roth conversion involves moving money from a Traditional IRA (pre-tax) to a Roth IRA (after-tax). You pay income tax on the conversion amount now, but all future growth and qualified withdrawals are tax-free. This calculator helps you determine whether converting makes financial sense based on your current and expected future tax rates.
Roth conversions are most beneficial when your current tax rate is lower than your expected future rate, when you have a long time horizon for tax-free growth, or when you want to reduce Required Minimum Distributions (RMDs) in retirement. The 2026 tax landscape may change, making conversions particularly strategic now.
Consider partial conversions spread over multiple years to stay in lower tax brackets. Be aware that conversion income can affect Medicare premiums (IRMAA) and Social Security taxation. Consult a tax professional for your specific situation.
Frequently Asked Questions
When does a Roth conversion make sense?
Conversions are most beneficial when your current tax rate is lower than your expected future rate, you have a long time horizon, or you want to reduce future RMDs. Years with lower income are ideal conversion opportunities.
Can I undo a Roth conversion?
No. Since 2018, the Tax Cuts and Jobs Act eliminated the ability to recharacterize (undo) Roth conversions. Once converted, the decision is permanent.
Do I have to convert all at once?
No. Partial conversions allow you to spread the tax impact over multiple years, potentially staying in lower tax brackets. This is a common strategy.