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💰 Finance

Roth Conversion Calculator

The Roth Conversion Calculator shows the immediate tax bill from converting pre-tax retirement savings to a Roth IRA, and whether the tax-free growth makes it worthwhile by comparing projected balances at retirement.

Last reviewed: January 2025 Formula shown No signup required

Educational estimate. Calculator results are for planning and information only, not financial, tax, medical, legal, or engineering advice. Verify important decisions with official sources or a qualified professional.

Roth Conversion Calculator

Traditional IRA to Roth IRA Tax Cost

$
$

Your W-2 income, business income etc. (excluding the conversion amount)

years
%
%

Your marginal rate when you withdraw from the Traditional IRA in retirement

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📐 Formula & Method

Conversion Tax

Tax = Conversion Amount × Marginal Federal Rate (2024 brackets)

The conversion amount is added to your income and taxed at your marginal rate. The after-tax Roth balance grows tax-free vs. the Traditional balance which is subject to RMDs and ordinary income tax.

📋 How to Use

  1. 1

    Enter the amount you want to convert.

  2. 2

    Enter your other income this year.

  3. 3

    Set years to retirement and expected return.

  4. 4

    Compare Roth vs Traditional projected balances.

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Roth Conversion — When Does It Make Sense?

A Roth conversion makes sense when your current tax rate is lower than your expected retirement tax rate, when you have money outside the IRA to pay the conversion tax, or in low-income years (job loss, early retirement). SECURE 2.0 eliminated the age 72 RMD requirement for Roth 401(k)s, making Roth accounts even more attractive.

🔬 Methodology & Accuracy

Formula: Uses the standard mathematical formula shown in the Formula & Method section above. All computations run client-side in your browser — no data is sent to our servers.

Data sources: Tax bands, contribution limits and regulatory rates are taken from official US (IRS, SSA) and UK (HMRC, gov.uk) publications for the current tax year, and updated when bands change.

Last reviewed: January 2025 · Accuracy: Results are precise to two decimal places using IEEE-754 double-precision arithmetic. Intended for educational and planning use only.

For informational purposes only. Results are estimates based on the inputs and formulas provided. For financial, tax, medical, or legal decisions, consult a qualified professional. Rates and regulations change — always verify current figures with official sources.

❓ Frequently Asked Questions

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