run roth-conversion
Roth Conversion Simulator
Convert now and pay the tax, or leave it deferred? Side-by-side lifetime after-tax outcomes.
New to this? Start here
A Roth conversion means paying tax on a traditional IRA/401(k) balance today so it can grow completely tax-free forever after. It's usually worth it if you expect to be in a higher tax bracket later than you are right now. This shows the exact break-even point.Conversion tax bill today
$24,149
After-tax difference at horizon
$2,079
convert now wins
Breakeven retirement tax rate
21.5%
above this, converting now wins
Converting now breaks even if your tax rate in retirement is above 21.5%. At your assumed 22%, converting now wins by $2,079 after 20 years.
Convert nowStay traditional
View as table
| Year | Convert now | Stay traditional |
|---|---|---|
| 0 | $100,000 | $102,149 |
| 2 | $114,490 | $116,426 |
| 4 | $131,080 | $132,771 |
| 6 | $150,073 | $151,484 |
| 8 | $171,819 | $172,909 |
| 10 | $196,715 | $197,439 |
| 12 | $225,219 | $225,523 |
| 14 | $257,853 | $257,677 |
| 16 | $295,216 | $294,489 |
| 18 | $337,993 | $336,636 |
| 20 | $386,968 | $384,889 |
Methodology & assumptions
- Uses 2025 federal ordinary-income brackets to compute today's conversion tax bill.
- The conversion tax is assumed to be paid from outside (already-taxed) cash — paying it from the IRA itself would shrink the converted balance and change the math.
- The converted Roth balance grows tax-free with no further withdrawal tax, per current qualified-distribution rules.
- In the 'stay traditional' scenario, the cash that would have paid the conversion tax instead grows in a taxable account, taxed once at the end at a flat 15% long-term capital gains rate — real accounts would owe tax on dividends and turnover along the way.
- The retirement withdrawal tax rate is a flat assumption you set — it does not model future bracket changes, RMDs, Social Security taxation, or state tax.
- A constant annual return is applied every year; it does not model sequence-of-returns risk or market volatility.
- This does not account for Roth income eligibility limits, conversion pro-rata rules for mixed pre/post-tax IRAs, or the 5-year Roth conversion rule.
Educational only
This simulator is for education. It uses simplified assumptions, is not financial, tax, or investment advice, and no result here is a prediction or a recommendation. Talk to a licensed professional before acting.More tax math tools
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