Roth IRA Rollover Calculator
Should you roll over your Traditional IRA to a Roth?
The Conversion Decision
A Roth conversion moves money from a Traditional IRA (pre-tax) to a Roth IRA (post-tax). This triggers an income tax bill this year on the amount converted.
The math works in your favor if you can pay the tax at a lower rate today than you would pay in retirement, or if you want to eliminate Required Minimum Distributions (RMDs) later in life.
Critical Rules
When you do a rollover, the principal amount converted must stay in the Roth account for 5 years before you can withdraw it penalty-free (unless you are over 59½).
If you use IRA funds to pay the tax, you have less money working for you. Also, if you are under 59½, the portion used to pay tax is considered an "early withdrawal" and may be hit with a 10% penalty.
Projected Net Worth Comparison
| Conversion Amount | $0.00 |
| Tax Source | |
| Tax Rates | 0% Now vs 0% Later |
| Results Summary | ||
|---|---|---|
| Metric | Keep Traditional (Do Nothing) |
Convert to Roth (Action Taken) |
| Starting Principal | $0 | $0 |
| Conversion Cost Paid immediately | $0 | $0 |
| Gross Growth At end of term | $0 | $0 |
| Tax on Withdrawal Paid at end | $0 | $0 |
| NET VALUE | $0 | $0 |