Roth Conversion Tax Impact Estimator
"Estimate your tax bill today, and your future tax-free gains tomorrow."
Considering a Roth IRA conversion? Use this tool to estimate how much tax you'll pay today and how quickly tax-free compounding can make up for it. Compare your current pre-tax IRA vs. post-tax Roth IRA over time to see if converting now fits your retirement strategy.
Ready to Analyze Your Roth Conversion
Enter your financial details on the left to estimate the tax impact and long-term benefits of converting to a Roth IRA.
What this tool will show you:
- • Immediate tax cost of conversion
- • Breakeven timeline for tax-free growth
- • Projected retirement values comparison
- • Long-term advantage or disadvantage
You expect higher taxes in retirement
If you think your tax rate will be higher in retirement, paying taxes now can save you money later.
You have cash available to pay conversion taxes
Paying taxes from outside funds preserves more retirement money for tax-free growth.
You want tax-free withdrawals for future flexibility
Roth IRAs have no required minimum distributions and offer tax-free income flexibility.
How much tax will I owe on a Roth conversion?
You'll owe income tax on the entire converted amount at your current federal and state tax rates. For example, converting $50,000 at 24% federal + 5% state tax would cost $14,500 in taxes.
When is the best time to convert to a Roth IRA?
The best time is typically when you're in a lower tax bracket than you expect to be in retirement, or during years with lower income. Many people convert during early retirement or between jobs.
How do you calculate the Roth conversion breakeven point?
The breakeven point is when the tax-free growth of your Roth IRA exceeds what you would have after-tax from a traditional IRA. We calculate this by comparing yearly values and finding when the Roth advantage becomes positive.