Should I Rollover to a Roth IRA?

Evaluate the benefits of converting traditional retirement accounts to Roth.

  • Methods explained
  • Save scenarios
  • Compare saved scenarios

When you pay conversion tax from outside funds, the comparison includes the future value of that cash. Returns and tax rates remain constant, and the projected Roth withdrawal must be qualified.

Conversion Details

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Conversion Analysis

Conversion Tax$48,000
Roth Value at Retirement$932,191
Traditional Value at Retirement$932,191
Traditional After-Tax$727,109
Net Benefit of Conversion-$18,644

✗ Keeping Traditional IRA may be better

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