Roth Conversion Calculator
Model Roth conversions with bracket-filling logic, multi-year ladders, break-even analysis, and side-by-side Traditional vs. Roth projections. Free, private, and entirely in your browser.
Roth Conversion Calculator
Compare the tax cost of converting now vs. projected tax savings at withdrawal. Model single-year or multi-year conversion ladders with bracket-filling logic.
Your Situation
Top of 22% bracket: $103,350
Auto-updates as you adjust inputs · Single · 2026 tax brackets
Related Calculators
What Is a Roth Conversion?
A Roth conversion is the process of moving money from a Traditional IRA or 401(k) — accounts funded with pre-tax dollars — into a Roth IRA, which offers tax-free growth and tax-free withdrawals in retirement. You pay income tax on the converted amount in the year of the conversion, but once the funds are inside a Roth IRA, they grow tax-free and can be withdrawn tax-free after age 59½, provided the account has been open for at least five years (IRS, "Roth IRAs").
Unlike Roth IRA contributions, which have income phase-out limits, there are no income limits on Roth conversions. This makes the backdoor Roth strategy — converting a non-deductible Traditional IRA contribution to a Roth — accessible to high earners who cannot contribute directly to a Roth IRA (Fidelity, "Roth IRA Conversion").
How Do Roth Conversions Work?
When you convert Traditional IRA funds to a Roth, the converted amount is added to your taxable income for that tax year. For example, if you convert $50,000 and are in the 22% federal bracket, you will owe approximately $11,000 in federal income tax on the conversion. The key insight is that you want to convert during years when your tax rate is lower than it will be in retirement — this is the fundamental principle behind Roth conversion planning.
Bracket-Filling Strategy
One of the most effective Roth conversion strategies is "bracket filling" — converting just enough each year to fill up your current tax bracket without jumping into the next one. For instance, if you are single and have $60,000 of taxable income, you could convert up to $47,150 (the 2024 bracket ceiling for the 22% bracket) minus your existing income, staying within the same bracket. This approach minimizes the tax cost of each conversion while steadily moving assets into tax-free Roth territory.
The Roth Conversion Ladder
A Roth conversion ladder is a multi-year strategy where you spread conversions over several years, typically five, to manage tax liability and satisfy the five-year rule. This is particularly valuable for early retirees who need access to funds before age 59½. By converting a portion each year starting five years before you need the money, you create a rolling pipeline of tax-free funds. The Bogleheads community has extensively documented this strategy for early retirement planning (Bogleheads, "Roth IRA Conversion").
Tax Implications of Roth Conversions
The tax implications of a Roth conversion depend on several factors: your current marginal tax rate, your expected retirement tax rate, the size of the conversion, and any other income in the year of conversion. Key considerations include:
- Medicare IRMAA surcharges: Large conversions can push you above Medicare income thresholds, triggering higher Part B and Part D premiums for two years.
- Net Investment Income Tax (NIIT): Conversions increase modified adjusted gross income, potentially triggering the 3.8% NIIT on investment income.
- Social Security taxation: Higher income from conversions can cause up to 85% of Social Security benefits to become taxable.
- ACA premium subsidies: If you are on an Affordable Care Act plan, conversions can reduce or eliminate premium tax credits.
Our Roth conversion tax calculator accounts for all federal brackets and helps you visualize exactly how much tax you will owe on any conversion amount, so you can make informed decisions before executing a conversion.
Roth Conversion Break-Even Analysis
A common question is: "Is a Roth conversion worth it?" The answer depends on how many years the converted funds will grow tax-free versus the tax you pay today. A Roth conversion break-even calculator compares the after-tax value of converting now versus leaving the money in a Traditional IRA and paying taxes on withdrawals later.
Generally, the longer your time horizon and the lower your current tax bracket relative to your expected retirement bracket, the more a Roth conversion favors you. If you expect to be in a higher tax bracket in retirement — due to rising tax rates, required minimum distributions, or other income sources — paying taxes now at a lower rate can save you significant money over time. Our calculator models this break-even point so you can see exactly when a Roth conversion becomes the better financial choice.
How to Use This Roth Conversion Calculator
This Roth IRA conversion calculator supports two primary modes:
Single-Year Conversion Mode
Enter your current Traditional IRA balance, your annual income, filing status, and state of residence. The calculator computes the exact tax cost of converting a specific amount and shows you the after-tax impact on your total retirement wealth.
Multi-Year Conversion Ladder Mode
For more advanced planning, switch to the multi-year ladder mode. Input a conversion schedule across multiple years and see how spreading conversions affects your cumulative tax burden. This mode is ideal for early retirees implementing a Roth conversion ladder strategy or anyone planning a phased approach to conversion.
The calculator also provides a side-by-side comparison of Traditional vs. Roth outcomes, showing projected account balances, total taxes paid, and after-tax spending power over your retirement horizon. This makes it easy to evaluate whether a Roth vs. Traditional IRA conversion is the right move for your situation.
Common Roth Conversion Mistakes to Avoid
Even experienced investors make errors when planning Roth conversions. Here are the most common pitfalls:
- Converting too much at once: A lump-sum conversion can push you into a higher tax bracket, dramatically increasing the tax cost. Use bracket-filling to stay in your current bracket.
- Ignoring state taxes: If you live in a state with income tax, you owe state tax on the conversion too. Some states exempt retirement income or offer special treatment.
- Forgetting the five-year rule: Each conversion has its own five-year clock for penalty-free withdrawals before age 59½. Converting close to retirement can lock up funds.
- Not accounting for Medicare premiums: Large conversions can trigger IRMAA surcharges, adding thousands in extra Medicare costs.
- Overlooking Roth beneficiary rules: inherited Roth IRAs are subject to the 10-year distribution rule for most non-spouse beneficiaries, which affects estate planning.
Why Use Our Roth Conversion Calculator?
Our Roth conversion calculator online is designed for accuracy and privacy:
- 100% private: All calculations run in your browser. No data is sent to any server, no cookies, no tracking.
- Current tax brackets: Uses the latest federal tax brackets sourced from official IRS publications and reviewed annually.
- Bracket-filling logic: Automatically calculates the optimal conversion amount to fill your current bracket without overpaying taxes.
- Multi-year modeling: Plan a full Roth conversion ladder across multiple years with projected tax implications.
- Break-even analysis: See exactly when a Roth conversion becomes more favorable than staying with a Traditional IRA.
Whether you are planning for early retirement, optimizing your tax bracket in a low-income year, or implementing a long-term Roth conversion strategy, this tool gives you the clarity to make confident decisions. Pair it with our Roth IRA Calculator to project long-term account growth, or use our FIRE Planner to model your complete path to financial independence.
Sources & Last Updated
The figures below should be reviewed quarterly. Each is linked to its primary source.
Frequently Asked Questions
What is a Roth conversion?
A Roth conversion is the transfer of money from a Traditional IRA or 401(k) into a Roth IRA. You pay income tax on the converted amount in the year of the conversion, but the funds then grow tax-free and can be withdrawn tax-free in retirement. Unlike Roth IRA contributions, there are no income limits on conversions — anyone can convert regardless of income level.
How does a Roth conversion work?
When you convert Traditional IRA funds to a Roth, the converted amount is added to your taxable income for that tax year. You report the conversion on your tax return and owe income tax at your current marginal rate. Once inside the Roth IRA, the money grows tax-free. After age 59½ and satisfying the five-year rule, all withdrawals are tax-free. You can convert any amount, at any time, with no limit on the number of conversions per year.
When does a Roth conversion make sense?
A Roth conversion makes sense when you expect your tax rate in retirement to be higher than it is now, or when you have a low-income year that temporarily drops you into a lower bracket. Common scenarios include early retirement, sabbaticals, gap years before Social Security begins, or years with reduced earned income. It also makes sense if you believe federal tax rates will rise in the future or you want to reduce future Required Minimum Distributions (RMDs).
What taxes do I pay on a Roth conversion?
You pay ordinary income tax on the full amount converted at your current marginal federal tax rate. For example, converting $50,000 while in the 22% bracket results in approximately $11,000 in federal tax. State income tax may also apply depending on where you live. There is no early withdrawal penalty on conversions if the funds stay in the Roth IRA, though converting from a 401(k) before age 59½ may trigger a 10% penalty on the converted amount unless an exception applies.
What is a Roth conversion ladder?
A Roth conversion ladder is a multi-year strategy where you spread conversions across several years — typically five — to manage tax liability and satisfy the five-year rule for penalty-free withdrawals before age 59½. Each year you convert an amount that fills up to the top of a target tax bracket, keeping each year's conversion in a lower bracket. This is especially valuable for early retirees who need access to funds before traditional retirement age.
What is bracket-filling Roth conversion strategy?
Bracket-filling is a Roth conversion strategy where you convert just enough each year to fill your current tax bracket without crossing into the next one. For instance, if you are single with $60,000 of taxable income, you could convert up to the 22% bracket ceiling without triggering the 24% rate. This minimizes the tax cost of each conversion while steadily moving assets into tax-free Roth territory over time.
Should I convert my Traditional IRA to a Roth IRA?
The answer depends on your current tax rate, expected retirement tax rate, time horizon, and whether you can pay taxes from non-retirement funds. A Roth conversion is generally favorable if you expect to be in a higher bracket in retirement, want tax-free withdrawals, or wish to reduce RMDs. It is less favorable if you need the converted funds soon, cannot pay the tax from external savings, or are already in a high bracket. Use our calculator to model your specific scenario.
How is the Roth conversion break-even point calculated?
The break-even point compares the after-tax value of converting now versus leaving funds in a Traditional IRA and paying taxes on withdrawals later. It factors in your current tax rate, expected retirement tax rate, investment growth rate, and time horizon. If the Roth's tax-free growth outweighs the upfront tax cost over your time horizon, the conversion wins. The longer your time horizon and the lower your current bracket relative to retirement, the sooner you reach break-even.
Is my data stored or shared?
No. All calculations run entirely in your browser using JavaScript. No data is sent to any server, no cookies are set, no analytics are collected, and no personal information is stored or shared. Once you close the page, all entered data is gone. Your financial information stays completely private.
Is this calculator financial advice?
No. This tool is for educational and informational purposes only. It provides hypothetical projections based on current federal tax brackets and the assumptions you enter. It does not account for state taxes, IRMAA surcharges, RMDs, Social Security taxation, the Net Investment Income Tax, or other factors that may affect your specific situation. Tax law changes frequently and your individual circumstances matter. Always consult a licensed financial advisor or tax professional for guidance specific to your situation.
Methodology
What a Roth conversion is, why bracket-filling matters, how the break-even calculation works, and the assumptions behind the projections.
1 What Is a Roth Conversion?
A Roth conversion moves money from a traditional IRA or 401(k) — where contributions were tax-deductible and withdrawals are taxed as ordinary income — into a Roth IRA, where contributions are made with after-tax dollars but withdrawals in retirement are completely tax-free.
You pay income tax on the converted amount in the year of conversion, but once the money is in a Roth IRA, it grows tax-free and can be withdrawn tax-free after age 59½ (provided the account has been open for at least 5 years). There are no income limits on Roth conversions — anyone can convert regardless of income level.
2 Why Bracket-Filling Is the Key Strategy
The most tax-efficient conversion strategy is bracket filling — converting just enough to bring your taxable income up to the top of a target tax bracket, without spilling into the next higher bracket. This minimizes the tax rate paid on the conversion.
For example, if you're single with $60,000 in taxable income (in the 22% bracket, which runs to $105,700 in 2026), you could convert up to $45,700 and have every dollar of that conversion taxed at 22% — rather than converting a larger amount that pushes some dollars into the 24% bracket. This is the strategy most tax-aware retirees use, and it's what most competitors' calculators don't properly model.
3 Multi-Year Conversion Ladder
A conversion ladder spreads conversions across multiple years instead of doing one large lump-sum conversion. This is the real differentiator in Roth conversion planning because:
- It keeps each year's conversion within a lower bracket, reducing the overall tax rate paid across the entire conversion
- It avoids jumping into higher brackets that a single large conversion would trigger
- It provides flexibility — you can adjust the amount each year based on income changes, windfalls, or tax law changes
The ideal ladder length depends on the gap between your current and retirement tax brackets, the size of your traditional balance, and how many years you have before retirement. This tool models the ladder by assuming the same conversion amount each year (either a fixed dollar amount or bracket-filling each year), with the remaining traditional balance continuing to grow at your assumed rate.
4 How the Break-Even Calculation Works
The break-even analysis answers the question: at what future tax rate does a Roth conversion stop making sense?
When you convert, you pay tax now at your current marginal rate. The "cost" of the conversion is the tax paid plus the opportunity cost of that money not being invested. At retirement, the converted amount grows tax-free, while the unconverted amount would be taxed as ordinary income.
The break-even rate is approximately equal to the effective marginal rate you pay on the conversion (total conversion tax ÷ conversion amount). If your expected retirement marginal rate is lower than the break-even rate, keeping traditional is better. If it's higher, converting wins.
This is a simplification — it doesn't account for RMDs, Social Security taxation, IRMAA surcharges, or changing tax law — but it gives you the core decision framework.
5 Growth Projection Assumptions
- Fixed annual return — the tool uses a user-specified growth rate (default 7%), applied annually. This is deterministic, not Monte Carlo — projections represent a single growth scenario.
- Tax on conversion paid from external funds — the conversion tax is assumed to be paid from money outside the retirement account, so the full converted amount goes into the Roth.
- Constant tax brackets — bracket thresholds are assumed to remain at 2026 levels. In reality, brackets are inflation-adjusted annually and may change due to legislation.
- No state income tax — the tool models federal tax only. State tax implications vary widely and should be considered separately with a tax professional.
- No RMDs modeled — Required Minimum Distributions from traditional accounts (starting at age 73 under SECURE 2.0) can force taxable income that affects the optimal conversion strategy. This tool does not model RMDs.
Model defaults: 7% annual growth · 2026 federal tax brackets · Bracket-filling to top of 22% bracket · Tax paid from external funds.
Last updated: August 2, 2026 · Tax brackets reviewed annually (Q4, when IRS publishes new figures). Growth assumptions reviewed quarterly.
Annual review comment: 2026 brackets confirmed July, 2026. Next scheduled bracket review — Q4 2026. Check IRS announcements for 2027 tax year inflation adjustments.