IRA to Roth Conversion Calculator
Assumptions: Federal Adjusted Gross Income(AGI) before IRA conversion is assumed to be $100,000 or less, if married it assumed you are filing jointly, and contributions that have been made to any Traditional IRA were fully deductible.
Current Taxable Amount in Traditional IRA    
Years until Retirement    
Expected Pre-Retirement Rate of Return    
Federal Income Tax Rate    
Anticipated Years in Retirement    
Expected Post-Retirement Rate of Return    
Federal Income Tax Rate During Retirement    
Results
Traditional IRA Roth IRA
Estimated Account Value at Retirement $32,383.87            $32,383.87
Annual Distribution $2,823.37            $2,823.37
Total Value of Distributions $56,467.48            $56,467.48
Taxes Due at Conversion $4,200.00            --------
Lost Investment Opportunity $7,352.99            --------
Post Retirement Tax --------            $423.51
Post Retirement Tax $7,352.99            $8,470.12
Net After-Tax Value of Account $49,114.49            $47,997.35
Net After-Tax Value of Account Traditional IRA: +$1,117.14
» If your current Traditional IRA Account has a balance of $15,000.00 and you have 10 years until retirement and expect to have an annual rate of return of 8.00% before retirement and a federal income tax rate of 28.00%. Assuming you will spend approximately 20 years in retirement and expect to have an annual rate of return of 6.00% during retirement and a federal income tax rate of 15.00% during retirement, your estimated account value at retirement will be $32,383.87 with an annual distribution amount of $2,823.37 for a total of $56,467.48 in distributions. If you leave your funds in a Traditional IRA account, you will have $4,200.00 in taxes due at conversion and a lost investment opportunity amount of $7,352.99 with a total tax amount due of $7,352.99 leaving you with a net after-tax value of $49,114.49. If you convert your Traditional IRA account to a Roth IRA account, you will have $423.51 in post retirement tax due with a total tax amount due of $8,470.12 leaving you with a net after-tax value of $47,997.35. Your greatest net value would be a Traditional IRA: +$1,117.14