Roth Conversion Analyzer
The tax due on converting this year, the years to break even, and the lifetime tax the conversion saves or costs against your expected bracket in retirement.
Your numbers
$
$
years
Do you have funds outside the IRA to pay the conversion tax?
- Tax Due Now
- $15,650
- Breakeven
- 4 yrs
- Projected Tax Saved
- $30,786
- Net Lifetime Benefit
- +$30,786
Tax due now is federal plus state on the converted amount. Breakeven is the years to recover that upfront tax. Projected tax saved is against paying tax on the same money in retirement.
Roth conversion appears beneficialConverting now at 22% instead of paying 24% in retirement saves $30,786 over 20 years.
A Roth conversion is most powerful when
- Your current tax bracket is lower than your expected retirement bracket.
- A large traditional balance creates RMD risk at 73 and after.
- You have a low-income year (career break, sabbatical, job change).
- You have funds outside the IRA to pay the conversion tax.
Save results
How this is calculated
We compare the tax you’d pay to convert today against the tax you’d likely avoid in retirement, to see if a conversion comes out ahead.
The steps
- Tax due now = conversion amount × (current federal bracket + state rate).
- Grow the converted amount at ~7% to retirement, then estimate the tax that would have been owed at your future bracket.
- Net benefit = future tax avoided − tax paid now; we also estimate a break-even horizon.
Assumptions
- 7% growth; brackets you enter for now and retirement.
- You pay the conversion tax from outside the account.
- Conversions are capped at your IRA balance — you can’t convert more than the account holds.
Good to know
- Doesn’t model IRMAA, ACA subsidies, or RMD interactions in depth.
Related resources
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. For tax advice, consult a CPA or Enrolled Agent. View full disclosures