Roth Conversion Calculator
Compare paying tax now to move money into a Roth with leaving it in a traditional account. See which could leave you better off.
What we noticed
Year by year
How this calculator works
When you convert, the amount is added to your income and you pay tax on it now. After that, the money grows and can be taken out tax-free in retirement, if you meet the rules. If you do not convert, you pay tax when you take the money out.
So the question is mainly whether your tax rate now is lower or higher than it will be in retirement. We compare the two paths over the years you choose, whether you pay the conversion tax from other savings or from the converted money itself.
This is a simple comparison. It does not model every effect on your income, so talk to a tax professional before a large conversion.
Key Roth conversion rules
| Tax on a conversion | Taxed as ordinary income in the year you convert |
|---|---|
| Income limit for converting | None |
| Undo a conversion | Not allowed since 2018 |
| Tax-free earnings | Generally after 59½ and 5 years from your first Roth contribution or conversion |
| Required withdrawals | None for a Roth IRA, and none for a Roth 401k from 2024 |
Frequently asked questions
When does a Roth conversion make sense?
Usually when your tax rate now is lower than you expect it to be later, for example in a low-income year, or if you expect higher taxes in the future.
Do I pay tax when I convert?
Yes. The converted amount is added to your income for the year. It is best to pay that tax from money outside the account if you can, so the full amount keeps growing.
Can a conversion push me into a higher bracket?
Yes, a large conversion can. It can also raise Medicare premiums and the tax on Social Security. Many people convert in smaller pieces over several years.
Can I undo a conversion?
No. Since 2018 a conversion cannot be reversed, so be sure before you do it.