Roth IRA Conversions

Note: If you choose to convert your Traditional IRA to a Roth IRA, you must pay taxes on your current IRA balance at the time of conversion.

The projections displayed in this calculator are based on an assumed annual yield of 8% and a starting conversion amount in the Traditional IRA of $10,000. All taxes on Traditional IRA distributions are based on the "Anticipated Tax Bracket at Retirement." The projected values are based on the assumption that all conversion taxes are paid out of pocket (not out of IRA assets). The Traditional IRA figures reflect additional non-IRA accumulations attributable to the tax savings associated with not converting, invested in a taxable, interest-bearing account. All taxes on the investment of these tax savings are based on the "Current Tax Bracket" during the accumulation phase (i.e., up to age 70), and at the "Anticipated Tax Bracket at Retirement" during the distribution phase (i.e., age 70 and beyond). Both the "Lump Sum" and the "16-Year Payout" projections are based on distributions beginning at age 70. Lump sum distributions are assumed to be made on the first day of the plan year. Annuity distributions are assumed to be made on the last day of the year.

This calculator is intended as a comparison tool only and is not intended as a substitute for tax or legal advice regarding an individual's retirement savings needs. The projections are based on certain assumptions which may not accurately reflect an individual's personal financial picture or goals. Individuals are advised to consult a competent financial planner to assist them in determining which IRA product is best suited to their personal financial situation.