Should I make a Roth conversion?
Enter the amount to convert, your income and your expected tax rate in retirement to see the tax you pay now and whether a Roth conversion comes out ahead.
- Gain from converting
- $19,052.71
Converting $50,000.00 costs $6,000.00 in tax now; after 20 years, converting comes out ahead by $19,052.71.
- Result
- converting comes out ahead by $19,052.71
- Tax on the conversion now
- $6,000.00
- Federal tax on it
- $6,000.00
- Tax rate on the conversion
- 12%
- Top federal bracket
- 12%
- Roth at the end
- $160,356.77
- Keep: after tax at the end
- $141,304.06
- Break-even future tax rate
- 10.12%
- Years
- 20
Gain from converting: $19,052.71. Converting $50,000.00 costs $6,000.00 in tax now; after 20 years, converting comes out ahead by $19,052.71.
Convert or keep?
What is each worth after tax, year by year?
The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use
How to calculate
Estimates the 2026 tax on converting a traditional IRA or 401(k) to a Roth, and compares the Roth with keeping the traditional account and paying tax on withdrawal later, with the break-even future tax rate.
Example with the default inputs (Amount to convert $50,000.00, Other taxable income $80,000.00, Filing status Married filing jointly, State tax rate now 0%, Tax rate when you withdraw 22%, Years until you withdraw 20, Yearly return 6%, Pay the conversion tax from Savings outside, Tax on outside investment returns 15%): Converting $50,000.00 costs $6,000.00 in tax now; after 20 years, converting comes out ahead by $19,052.71.
Method: Tax now = 2026 federal tax with the conversion − without + state rate × amount; convert: Roth = (amount, or amount − tax if paid from the IRA) × (1 + r)ⁿ; keep: amount × (1 + r)ⁿ × (1 − future rate) + tax kept outside × (1 + r × (1 − outside tax))ⁿ.
- Federal tax for tax year 2026 with the standard deduction and brackets; all other income is ordinary income.
- Both accounts earn the same steady return. Roth withdrawals are qualified (after 59½ and five years) and tax free.
- Paying the tax from the IRA before 59½ can add the 10% early withdrawal tax on that part; it is not included.
- A conversion raises this year’s income, which can raise Medicare premiums (IRMAA), make more Social Security taxable, and reduce credits; none of these are included.
- The future tax rate is your estimate; nobody knows future tax law.
Worked examples
Each example is checked against the calculator on every build.
- Amount to convert $50,000.00, Other taxable income $80,000.00, Filing status Married filing jointly, State tax rate now 0%, Tax rate when you withdraw 22%, Years until you withdraw 20, Yearly return 6%, Pay the conversion tax from The IRA gives Federal tax on it $6,000.00, Tax on the conversion now $6,000.00, Break-even future tax rate 12%, Gain from converting $16,035.68.Source: 2026 joint brackets (Rev. Proc. 2025-32) and Tax Table method
- Amount to convert $100,000.00, Other taxable income $0.00, Filing status Single, State tax rate now 5%, Tax rate when you withdraw 24%, Years until you withdraw 10, Yearly return 0%, Pay the conversion tax from Savings outside, Tax on outside investment returns 15% gives Federal tax on it $13,176.00, Tax on the conversion now $18,176.00, Roth at the end $100,000.00, Keep: after tax at the end $94,176.00, Gain from converting $5,824.00, Break-even future tax rate 18.176%.
- Amount to convert $10,000.00, Other taxable income $0.00, Filing status Married filing jointly, State tax rate now 0%, Tax rate when you withdraw 12%, Years until you withdraw 30, Yearly return 7%, Pay the conversion tax from The IRA gives Tax on the conversion now $0.00, Gain from converting $9,134.71, Break-even future tax rate 0%.
How it works
1. Tax now. Federal tax on the conversion = 2026 federal tax on (other income + amount) − 2026 federal tax on other income alone. Each: income − the standard deduction ($16,100 single or separate, $32,200 joint, $24,150 head of household), not below 0, at the 2026 brackets; below $100,000 of taxable income by the Form 1040 Tax Table method (tax at the middle of the $50 row, rounded to the whole dollar), from $100,000 by the exact rate schedule. State tax = amount × state rate. Tax now T = federal + state (at most the amount).
2. After n years at return r (G = (1 + r)ⁿ):
- Convert. Paid from savings: Roth = amount × G. Paid from the IRA: Roth = (amount − T) × G.
- Keep. Traditional after tax = amount × G × (1 − future rate). Paid from savings: the tax money T also stays invested outside, earning r less the tax on outside returns s each year: T × (1 + r × (1 − s))ⁿ. Paid from the IRA: no outside money.
- Gain from converting = Roth − keep; below 0, keeping the traditional account wins, and the result says which choice comes out ahead and by how much. The table shows both for each year 1 to n.
3. Break-even future tax rate f* = 1 − (Roth − outside money) ÷ (amount × G): the future rate at which both are equal. Paid from the IRA it is simply T ÷ amount.
Assumptions
- The same steady return in both accounts; qualified, tax-free Roth withdrawals.
- No 10% tax on money taken from the IRA to pay the tax, and no effects on Medicare premiums, Social Security taxation or credits.
Worked examples by hand
Joint, $80,000 other income, convert $50,000, tax paid from the IRA, 20 years at 6%, 22% later. Without: taxable $47,800, middle $47,825: $2,480 + 12% × $23,025 = $5,243. With: taxable $97,800, middle $97,825: $2,480 + 12% × $73,025 = $11,243. Tax now $6,000 (12%). Roth = $44,000 × 1.06²⁰ = $141,113.96; keep = $50,000 × 1.06²⁰ × 0.78 = $125,078.28. Converting is ahead by $16,035.68. Break-even rate = 6,000 ÷ 50,000 = 12%.
Single, no other income, convert $100,000, 5% state, paid from savings, no growth, 24% later. Taxable $83,900, middle $83,925: $1,240 + $4,560 + 22% × $33,525 = $13,176 federal; state $5,000; tax now $18,176. Roth $100,000; keep = $100,000 × 0.76 + $18,176 = $94,176. Converting is ahead by $5,824; break-even rate 18.176%.
Small conversion, joint, no other income. $10,000 is below the $32,200 standard deduction: tax now $0. After 30 years at 7%, converting is ahead by 10,000 × 1.07³⁰ × 12% = $9,134.71; break-even rate 0%.
Other questions people ask
How is a Roth conversion taxed?
The pre-tax amount you convert is ordinary income in the year of the conversion. It is added to your other income and taxed at your federal bracket, and usually by your state. There is no 10% early withdrawal tax on a conversion itself.
When does a Roth conversion make sense?
When your tax rate now is lower than the rate you expect when you withdraw. The break-even future tax rate on this page is the withdrawal tax rate at which converting and keeping the traditional account come out the same; if you expect a higher rate, converting wins.
Should I pay the tax from the IRA or from savings?
Paying from savings outside the IRA moves the whole amount into the Roth, which usually helps more. Paying from the IRA converts less, and before 59½ the part used for tax can owe the 10% early withdrawal tax.
Can I undo a Roth conversion?
No. Since 2018 a conversion cannot be recharacterized back to a traditional IRA (IRS Publication 590-B).
What else does a conversion change?
The extra income can raise Medicare premiums two years later (IRMAA), make more of your Social Security taxable, and reduce credits and deductions that phase out with income. This calculator does not include those.