See whether a Roth conversion is worth it: the tax you'd owe now vs the tax-free value in retirement, the break-even, and the net benefit of converting.
Pick a scenario, then adjust the amount, your tax rates, and time horizon.
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A Roth conversion moves money from a traditional IRA or 401(k) into a Roth IRA — you pay income tax on the converted amount now, in exchange for tax-free growth and tax-free withdrawals later. The catch is the upfront tax bill, so the big question is whether paying tax now beats paying it in retirement. This calculator answers it: enter the amount, your current and expected retirement tax rates, your time horizon, and whether you'll pay the tax from outside funds or the IRA itself. You'll see the tax due now, the future value of converting (Roth) versus staying put (traditional, after tax), the net benefit, and a clear worth-it verdict — no account or signup required.
When you convert, the amount is added to your ordinary taxable income for the year and taxed at your marginal rate — there's no income limit and no cap on how much you can convert. The conversion pays off when your tax rate now is lower than (or equal to) your expected rate in retirement, and the longer the money then grows tax-free, the better. A popular strategy is to 'fill the bracket' — convert just enough to reach the top of your current tax bracket without spilling into the next higher rate. Paying the conversion tax from outside funds (not the IRA) is almost always better, because it keeps 100% of the converted amount growing tax-free. Conversions also reduce future Required Minimum Distributions (Roth IRAs have no RMDs during your lifetime) and pass to heirs tax-free. Watch the side effects: a large conversion can raise your Medicare premiums through IRMAA (2026 MAGI thresholds begin at $103,000 single / $206,000 married filing jointly), and the pro-rata and 5-year rules can apply.
Net Benefit Formula
Convert during a gap year, sabbatical, or early retirement when your tax rate is temporarily low.
Convert just enough to reach the top of your current bracket at the lowest rate.
Shrink your traditional balance before age 73 to lower required minimum distributions.
Leave tax-free Roth dollars to heirs instead of a taxable traditional IRA.
Plan annual conversions in early retirement to access funds and lock in low rates.
Build a tax-free bucket alongside pre-tax accounts for flexibility in retirement.
See the net benefit and a clear worth-it verdict instead of guessing.
See exactly how much income tax the conversion adds this year.
Compares the future Roth value against staying traditional and paying tax in retirement.
Shows how paying the tax from outside funds boosts the long-run benefit.
Find the retirement tax rate at which converting starts to pay off.
No brokerage account or signup — just the numbers behind the decision.
It's generally worth it when your current tax rate is the same as or lower than your expected retirement rate, you have a long time for the money to grow tax-free, and you can pay the conversion tax from outside funds. It's less attractive if you'd pay a high rate now and expect a lower rate later. Enter your numbers above to see the net benefit for your situation.
The converted amount is added to your ordinary taxable income for the year and taxed at your marginal rate. There's no income limit and no cap on the amount you can convert. A large conversion can push part of the amount into a higher bracket, which is why the 'fill the bracket' strategy is popular.
Yes, when you can. Paying the tax from a separate cash or savings account keeps 100% of the converted amount growing tax-free in the Roth. Paying the tax from the IRA itself shrinks the amount that converts, reducing the long-run benefit (and may trigger a penalty if you're under 59½).
It means converting just enough to reach the top of your current federal tax bracket without spilling into the next higher rate. This converts the most dollars at the lowest possible marginal rate, often spread across several years.
Roth IRAs have no required minimum distributions during your lifetime, so converting traditional money to Roth reduces the balance subject to RMDs starting at age 73. Converting in your 50s and 60s — before RMDs begin — can lower those forced, taxable withdrawals later.
It can. A conversion increases your Modified Adjusted Gross Income, and Medicare uses your MAGI from two years prior to set Part B and Part D premiums. For 2026, IRMAA surcharges begin above $103,000 (single) or $206,000 (married filing jointly), so a large conversion may raise premiums two years later.
No. Unlike Roth contributions, Roth conversions have no income limit and no dollar cap. This is the basis of the 'backdoor Roth,' where higher earners contribute to a traditional IRA and then convert it.
A conversion ladder is a series of annual conversions, often used by early retirees. Each converted amount can be withdrawn tax- and penalty-free five years later (the 5-year rule), creating a bridge of accessible funds while keeping each year's conversion in a low tax bracket.