Roth Conversion Tool
Roth IRA Conversion Calculator
Does converting to a Roth IRA make sense for you? Compare the long-term after-tax impact of converting versus keeping your Traditional IRA.
Roth conversions are one of the most impactful tax strategies I recommend, and this calculator helps you see why.
No sign-up required · Instant results
Projected Net Benefit of Converting
+$0
after 15 years at an assumed 7.0% annual return
Educational estimate based on your inputs and 2026 federal brackets, not a prediction of actual results.
Estimated Tax Cost of Conversion
$0
Eff. rate: 23.4%
Break-Even Retirement Rate
20.2%
Conversion wins above this
Bracket Impact
22% → 24%
Pushes into 24% bracket
After-Tax Value at Year 15
Roth produces $10,096 more after taxes
Projected Growth Over Time
Roth overtakes Traditional in Year 7
Converting $200,000 to a Roth IRA would cost $46,772 in taxes today (effective rate: 23.4%), but after 15 years of tax-free growth at 7.0%, your projected after-tax wealth would be $10,096 higher than keeping the Traditional IRA. Conversion breaks even if your retirement tax rate is above 20.2%.
A conversion strategy is rarely one-size-fits-all
A Farther advisor can model multi-year conversion ladders, state tax impact, IRMAA thresholds, and RMD strategies - tailored to your complete financial picture.
Build My Roth Conversion PlanConverting $200,000 costs $46,772 in tax now and projects $10,096 more after-tax wealth over 15 years. The right size of conversion depends on your bracket window.
This is an estimate, not a number to plan around alone.
This calculator is an educational tool to help you think through scenarios. The results are illustrative estimates based on the inputs you provided and general assumptions. They are not financial advice, and the numbers shown should not be relied on as exact to your situation.
Real outcomes depend on factors a calculator can't fully model: your complete tax picture, plan-specific rules, market performance, IRS rate changes, life events, and how all the pieces of your financial life interact. Past performance does not guarantee future results.
This tool does not collect, store, or transmit any financial data.
Calculations use 2026 federal income tax brackets and do not account for state and local taxes, deductions, credits, or other income sources not modeled here. Future tax law changes may significantly affect results. Tax-free Roth IRA withdrawals generally require the account to be open at least 5 years and the holder to be age 59½ or older; early withdrawals may be subject to taxes and a 10% penalty. Farther Finance Inc. is a registered investment adviser with the SEC; registration does not imply a certain level of skill or training. See our Form ADV Part 2A on the disclosures page.
Before making any decision based on these numbers, let's talk. I'll look at your full picture, pressure-test the assumptions, and help you understand what these numbers actually mean for you, at no cost.
By Jay Chang, VP, Wealth Advisor
Last updated July 6, 2026
What Is a Roth Conversion?
A Roth conversion moves money from a Traditional IRA or an old 401(k) into a Roth IRA. You pay ordinary income tax on the amount you convert this year. In exchange, the money grows tax-free, qualified withdrawals are tax-free, and Roth IRAs have no required minimum distributions during your lifetime.
The trade is easy to state and hard to price: a known tax bill today against an unknown tax rate decades from now. That comparison is exactly what this calculator estimates.
When Does a Roth Conversion Make Sense?
A conversion tends to pay off when the rate you pay on it today is lower than the rate you expect on withdrawals later. The strongest cases I see:
- Gap years. You have retired, but Social Security and required minimum distributions have not started. Income dips, brackets open up, and each conversion dollar is taxed at unusually low rates. The same window appears after a forced early retirement.
- A long runway. The more years the converted dollars compound tax-free, the more the upfront tax bill fades. The calculator's year slider shows this directly.
- Shrinking future RMDs. Converting reduces the Traditional balance that drives required distributions at 73 and beyond, which can also soften Medicare surcharges later.
- Money meant for heirs. Children who inherit a Traditional IRA must empty it within ten years, often during their peak earning years. An inherited Roth still follows the 10-year rule, but the withdrawals are tax-free.
Two cautions. A large conversion can push you into higher brackets, so converting in slices across several years often beats one big year. And a conversion counts toward the income that sets Medicare IRMAA surcharges two years later; for 2026 the surcharge starts at $109,000 for single filers and $218,000 married filing jointly. If you are still working and your plan allows after-tax contributions, the mega backdoor Roth covers the contribution side of the same strategy.
How to Use This Calculator
- Enter the amount you are considering converting, your current taxable income, and your filing status.
- Set the tax rate you expect to pay on withdrawals in retirement. If you are not sure, start with your current bracket and test one lower and one higher.
- Set the years until withdrawal and an assumed annual return. These are assumptions, so try a conservative version and an optimistic one.
- Read the estimated net benefit, the upfront tax cost, and the break-even retirement rate. If your future tax rate lands above the break-even, converting wins.
Roth Conversion Questions I Hear Most
How much tax will I pay on a Roth conversion?
The amount you convert is added to your ordinary income for the year and taxed at your marginal federal rates, plus state tax in most states. A large conversion can span more than one bracket: part taxed at your current rate, part at the next rate up. That bracket-by-bracket math is what the calculator estimates using 2026 IRS brackets.
Is there a limit on how much I can convert?
No. The IRS sets no dollar limit and no income limit on conversions. Anyone with a Traditional IRA can convert any amount in any year. One caution: since 2018, conversions are irreversible. There is no recharacterization, so the tax bill is locked in once you convert.
What is the five-year rule for conversions?
Each conversion starts its own five-year clock. Withdraw converted principal within five years while under age 59½ and a 10 percent penalty can apply. This clock is separate from the five-year rule on Roth earnings. The IRS Roth IRA rules cover both. If you will not touch the money for at least five years, this rarely changes the decision.
Can a conversion raise my Medicare premiums?
Yes. A conversion raises your modified adjusted gross income, and IRMAA surcharges are based on your income from two years earlier. For 2026, the surcharge starts at $109,000 single and $218,000 married filing jointly. The premium increase arrives two years after the conversion, which surprises people. Slicing conversions across years often avoids the cliff.
Do I pay state income tax on a conversion?
In most states with an income tax, yes. Arizona taxes conversions at its flat 2.5 percent rate, one of the lowest in the country. Nevada has none. California taxes conversions at rates up to 13.3 percent. If a move to a lower-tax state is on your horizon, the order of operations matters, and I cover that in my tax optimization work.