Converting to a Roth means paying tax now for tax-free growth later. See the cost.
A Roth conversion calculator estimates the tax you'd owe to convert traditional retirement savings to a Roth, and the tax-free growth that conversion could produce.
Converting moves money from a traditional account (taxed at withdrawal) to a Roth (tax-free withdrawals). You pay income tax on the converted amount now, at your marginal rate, in exchange for tax-free growth and withdrawals later. It's most attractive when your current tax rate is lower than you expect in retirement, or in a low-income year.
Paying the conversion tax from outside funds, rather than from the converted amount, lets the full balance grow tax-free and maximizes the benefit. Large conversions can push you into a higher bracket, so many people convert gradually over several years. Roth conversions also reduce future RMDs. Consider professional guidance, this is an estimate, not tax advice.
It's most attractive if your tax rate now is lower than you expect in retirement, or in a low-income year. You pay tax now for tax-free growth later.
The converted amount is added to your income and taxed at your marginal rate in the year of conversion. Paying the tax from outside funds is best.
Yes, Roth IRAs have no lifetime RMDs, so converting reduces the traditional balance subject to required distributions later.
See the exact formula and a worked example on our methodology page.