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 IRA 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.
     
  Client Name
  Advisor Name only
  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
     
 

RBC Wealth Management does not provide tax advice. This illustration is for informational purposes only, and is based on the information you provided and the assumptions utilized within. No representation is being made that your account will achieve profits or losses similar to those shown. Your actual returns will vary. Keep in mind that tax rates are subject to change. Because each individual's financial circumstances are unique, please consult with your tax advisor before implementing a Roth IRA conversion.

RBC Wealth Management, a division of RBC Capital Markets Corporation, Member NYSE/FINRA/SIPC