Should I Convert To A Roth IRA?

If your income is $100,000 or less and you are single or married, filing jointy, you may be eligible to convert your traditional IRAs to a Roth IRA in order to take advantage of federally tax-free earnings in the future.

You will generally pay ordinary federal income tax (but not the 10% penalty tax) on the taxable amount that is converted. Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA.
     
  Savings and Assumptions

Input
  Current age
  Age when income should start
  Number of years to receive income
Before tax return on savings:
(% - accumulation phase)
Before tax return on savings:
(% - distribution phase)
Income tax bracket:
(% - accumulation phase)
Income tax bracket:
(% - distribution phase)
  Current IRA balance
  Non-Deductible portion of IRA balance
How will you pay the conversion tax?
1) Pay taxes from non-IRA assets
2) Pay taxes from proceeds of Roth conversion		Option 1
Option 2
     
 

Any rate of return entered into the calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

The information provided here is to assist you in planning for your future. The accuracy of this calculator and its applicability to your circumstances is not guaranteed. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please not that individual situations can vary. Therefore, the information should be relied upon when coordianted with individual advice from qualified professionals.