Required Minimum Distribution – Roth 401(k) Transition

Analyze the effects of converting traditional retirement savings to a Roth IRA.

  • Methods explained
  • Save scenarios
  • Compare saved scenarios
  • Household prefill

Conversion taxes are paid from outside the retirement accounts. The comparison includes the growth that cash could otherwise earn at your selected return, and assumes Roth withdrawals qualify for tax-free treatment.

Conversion Details

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Conversion Analysis

Traditional at Retirement$365,165
Roth at Retirement$745,094
Conversion Taxes Paid$72,000
Traditional After-Tax$284,829
Total After-Tax Value$1,029,923
Tax Savings from Conversion-$11,730
How it works›

Model and assumptions. Compares pre-tax and Roth contributions or conversions using the entered tax rates, return and holding period. Current tax savings and withdrawal taxes are handled separately. Eligibility, early distributions, future rates and legislative changes are not predicted.IRS Publication 575IRS Publication 590-BOpenStax: annuity formulas