Recent Calculations
In 1997, the Roth IRA was introduced. This new IRA allowed for contributions to be made on an after-tax basis and all gains (or growth) to be distributed completely tax-free. Since then, people with incomes under $100,000 have had the option to convert all or a portion of their existing Traditional IRAs to Roth IRAs. Beginning in 2008, participants with funds in eligible employer-sponsored plans could also roll those funds directly over to a Roth IRA in a qualified rollover if their income did not exceed the $100,000 threshold. Starting in 2010, all IRA owners and participants in eligible employer-sponsored plans, regardless of income level, are eligible to convert their Traditional IRA and pre-tax funds in an employer-sponsored plan [401(a)/(k), 403(b) and governmental 457(b)] to a Roth IRA. Is this a good option for you? A conversion has both advantages and disadvantages that should be carefully considered before you make a decision. This calculator compares two alternatives with equal out of pocket costs to estimate the change in total net-worth, at retirement, if you convert your Traditional IRA into a Roth IRA.
Please note the following important information regarding any Roth conversion.
Amount to convert from a traditional IRA account to a Roth IRA. The tool assumes that you are paying any taxes owed with funds that you have available outside of the account you are converting. If you are under 59½, the IRS treats any money not directly rolled over to the Roth IRA as an early withdrawal - even if that money is used to pay the tax bill caused by the conversion and, except in the case of a rollover from a governmental 457(b) plan, the funds will be subject to a federal tax penalty unless an exception applies.
The amounts, if any, contributed to your traditional IRAs or employer-sponsored accounts made with after-tax contributions. It is important to note that you may not "cherry pick" funds that are either after-tax or pre-tax to convert. If you are not converting all of your IRAs or the entire amount in your employer-sponsored plan, you must convert a prorated amount of the pre-tax (deductible) and after-tax (nondeductible) balance. All of your IRAs are added together and treated as one for this purpose.
This current age of the account owner must be less than 72 for this calculator. Although it is possible to convert an IRA at any age, this calculator does not take Required Minimum Distributions (RMD) into account, which begin at age 75 (or 70 1/2 if you were born before 7/1/1949, 72 if you were born 7/1/1949 to 12/31/1951, 73 if you were born 1/1/1951 to 1/1/1960) and is not designed for individuals that are currently required to begin making these distributions.
Desired age at retirement.
The annual rate of return for your IRA. This calculator assumes that your return is compounded annually. La tasa de rendimiento real depende en gran medida de los tipos de inversiones que elija. El índice Standard & Poor's 500® (S&P 500®) durante los últimos 10 años que finalizaron el 31 de diciembre de 2025, tuvo una tasa de rendimiento compuesta anual de 14.8 %, con la reinversión de dividendos. Desde el 1 de enero de 1970 hasta el 31 de diciembre de 2025, la tasa de rendimiento compuesta anual promedio del S&P 500®, con la reinversión de dividendos, fue aproximadamente del 11.3 % (fuente: www.spglobal.com). Desde 1970, el rendimiento más alto a 12 meses fue del 61 % (desde junio de 1982 hasta junio de 1983). El rendimiento más bajo a 12 meses fue del -43 % (desde marzo de 2008 hasta marzo de 2009). Las cuentas de ahorro en una institución financiera pagan menos, pero conllevan un riesgo significativamente menor de pérdida de saldos de capital.
Es fundamental tener en cuenta que estos escenarios son meramente hipotéticos y que las tasas de rendimiento futuras no pueden preverse con certeza. Además, las inversiones que ofrecen tasas de rendimiento más altas suelen estar expuestas a un mayor riesgo y volatilidad. La tasa real de rendimiento de las inversiones puede variar significativamente con el tiempo, en especial en las inversiones a largo plazo. También puede implicar la posible pérdida de capital invertido. No es posible invertir directamente en un índice y la tasa de rendimiento compuesta mencionada anteriormente no incluye los cargos por ventas ni otras tarifas que imponen los fondos de inversión o las empresas de inversión.
Current marginal income tax rate that will apply to conversion amount. Please note that the marginal tax rate for your conversion may be higher than your current marginal tax rate if the conversion moves your AGI into a higher income tax bracket. It is also possible, especially on very large conversions, that part of your conversion be subject to more than one tax rate. **TAXTABLE_CURRENT_DEFINITION**
Expected marginal income tax rate at retirement.
Expected marginal tax rate (base this on expected capital gains rate) for investments. This calculator assumes that you invest the amount that you would have had to pay in taxes in a taxable investment account. The investment tax rate is used for calculating the annual return on these taxable investments. For many, this will be the same as their income tax rate. If you expect your non-IRA investments to be primarily from long-term capital gains or dividends, enter your expected capital gains rate here.