Roth IRA Conversion Calculator 2026
Should you convert your Traditional IRA to a Roth? Enter your IRA balance, conversion amount, tax brackets, and years to retirement to see which strategy puts more money in your pocket — and exactly when the Roth breaks even.
| Metric | Convert Now (Roth) | Stay Traditional |
|---|---|---|
| Net Value at Retirement |
How a Roth IRA Conversion Works
A Roth IRA conversion means moving money from a Traditional IRA (where contributions were pre-tax) into a Roth IRA (where growth and qualified withdrawals are tax-free). The catch: you pay income tax on the converted amount in the year of conversion. The strategic question is whether paying taxes now versus later leads to a larger after-tax nest egg at retirement.
The core math is simple: if your tax rate now is lower than your expected tax rate in retirement, converting makes financial sense. If your rate now is higher, staying Traditional may be better. But the breakeven timeline also matters — the longer your money has to grow tax-free in a Roth, the stronger the case for converting.
When to Convert vs. When to Stay Traditional
Roth Conversion Tends to Win When:
- Current tax bracket is lower than expected retirement bracket
- You have 15+ years until retirement (more tax-free compounding time)
- You can pay conversion taxes from outside the IRA (not reducing balance)
- You want to eliminate Required Minimum Distributions (RMDs)
- You are in a temporarily low-income year (sabbatical, early retirement, job gap)
Traditional IRA Tends to Win When:
- Current tax bracket is higher than expected retirement bracket
- You expect much lower income in retirement
- Fewer than 7 years to retirement (less time to recover conversion tax cost)
- You must use IRA funds to pay the tax (reduces the amount compounding)
Partial Conversions — The Smart Strategy
Most financial planners recommend partial Roth conversions spread over multiple years rather than converting everything at once. The goal is to "fill up" lower tax brackets each year without pushing income into a higher bracket.
For example, if your taxable income is $60,000 and the 22% bracket runs to $103,350 (single filer, 2026), you could convert up to $43,350 and stay in the 22% bracket. Repeating this over several years before retirement can shift a large portion of your savings to Roth at a controlled tax cost.
Roth Conversion and Required Minimum Distributions
Traditional IRAs require you to take Required Minimum Distributions (RMDs) starting at age 73. These withdrawals are fully taxable and can push retirees into higher brackets — even triggering higher Medicare premiums (IRMAA). Roth IRAs have no RMDs during the owner's lifetime. Converting before retirement can dramatically reduce the RMD burden, giving you more control over your retirement income and taxes in your 70s and beyond.
Frequently Asked Questions
When does a Roth IRA conversion make sense?
A Roth conversion makes sense when your current tax rate is lower than your expected retirement tax rate, you have many years until retirement (more time for tax-free growth), and you can pay the conversion tax from non-IRA funds so the full converted amount grows tax-free.
How much tax do I owe on a Roth IRA conversion?
The converted amount is added to your ordinary taxable income for the year of conversion and taxed at your marginal federal income tax rate. For example, converting $50,000 while in the 22% bracket typically adds roughly $11,000 in federal taxes, though your actual effective rate on the conversion may vary.
What is the Roth conversion breakeven point?
The breakeven year is when the Roth account's tax-free growth outweighs the tax drag on the Traditional IRA. It depends on your tax rate differential and expected returns. Most conversions break even within 7 to 15 years, sooner if your retirement tax rate is much higher than your current rate.
Is there an income limit for Roth IRA conversions?
No. Anyone can do a Roth conversion regardless of income. This is different from direct Roth IRA contributions, which phase out above certain income limits. High-income earners often use Roth conversions as a backdoor strategy.
Should I convert my entire Traditional IRA at once?
Usually not. Converting everything at once pushes income into higher brackets. A better strategy is partial conversions spread over several years, filling up lower tax brackets each year — especially in years when your income is temporarily lower.
What happens to RMDs after a Roth conversion?
Roth IRAs have no required minimum distributions (RMDs) during the owner's lifetime. This is a major benefit of converting: you avoid being forced to withdraw money in retirement, giving you more control over your taxable income and potentially reducing Medicare premiums.