Roth Conversion Calculator

A Roth conversion moves money from a Traditional IRA (pre-tax) to a Roth IRA (after-tax). You pay income taxes on the converted amount in the year of conversion, but all future growth and qualified withdrawals from the Roth are completely tax-free. There is no income limit or dollar cap on conversions.

Roth conversions are most beneficial when: (1) your current tax rate is lower than your expected retirement rate, (2) you have a long time horizon for tax-free growth, (3) you want to reduce future Required Minimum Distributions (RMDs), (4) you want to leave tax-free money to heirs, or (5) you have a low-income year (sabbatical, early retirement, gap year).

SECURE 2.0 Act requires that starting in 2026, employees aged 50+ who earned over $145,000 in FICA wages the prior year must make catch-up contributions to a designated Roth account rather than pre-tax. The standard catch-up limit is $7,500, with a super catch-up of $11,250 for those aged 60-63. This applies to 401(k), 403(b), and 457(b) plans.

Medicare uses your Modified Adjusted Gross Income (MAGI) from two years prior to determine IRMAA surcharges. A large Roth conversion increases your MAGI that year, potentially triggering higher Medicare Part B and Part D premiums two years later. For 2026, IRMAA thresholds start at $103,000 (single) and $206,000 (married filing jointly). Surcharges can range from $800 to over $4,000 per person per year.

The breakeven age is when the after-tax value of the Roth account equals what you would have had in the Traditional IRA after taxes on withdrawal. This typically ranges from 7 to 15+ years. Factors include: current vs. retirement tax rates, investment growth rate, state taxes, and whether you pay conversion taxes from outside funds. Living beyond your breakeven age means the conversion was financially beneficial.

No. Since 2018 (Tax Cuts and Jobs Act), Roth conversions are irrevocable. You cannot recharacterize a conversion back to a Traditional IRA. This makes it important to carefully calculate the tax impact before converting.

Spreading conversions over multiple years is usually optimal. Converting everything in one year can push you into the highest tax brackets and trigger IRMAA surcharges. A common strategy is to convert just enough each year to "fill up" your current tax bracket without spilling into the next one. Use the optimal conversion amount shown above to find your ideal annual conversion.