Interactive tax planning
Compare the tax cost now with the wealth kept later.
Model an illustrative Roth conversion against a traditional IRA using your current tax rate, future assumptions, time horizon, and expected growth.
Configure your assumptions
Tax comparisonMethod: both scenarios use the same selected growth rate. The Roth scenario assumes conversion tax is paid from the converted account balance in the first year; the traditional scenario applies the selected future tax rate at distribution.
Illustrative comparison
Estimated after upfront conversion tax.
Estimated after future income taxes.
Upfront tax paid: $60,000
Results are hypothetical and do not model every tax rule or personal circumstance, including basis, the pro-rata rule, state taxes, Medicare premiums, required distributions, five-year rules, transaction timing, investment taxes, or future law changes. The comparison also does not model the opportunity cost of paying conversion tax from outside funds. Roth conversion amounts may be included in gross income, and conversions after 2017 generally cannot be recharacterized. Consult a qualified tax professional before acting.
Read full disclosuresFrom comparison to strategy
Bring the tax tradeoffs into a broader retirement plan.
Schedule a complimentary retirement risk review with Mark, or start with the on-demand webinar when the timing is right.
Important context
Why consider a partial or full Roth conversion?
A Roth conversion generally moves taxable income into the conversion year in exchange for the potential for future qualified Roth distributions to be tax-free. The tradeoff depends on account basis, current and future tax rates, available cash, required distributions, Medicare-related costs, time horizon, and future law.