Roth IRA Conversion Calculator

Estimate the true cost and long-term benefit of converting your Traditional IRA to a Roth IRA using 2026 federal tax brackets.

Updated for 2026 Tax Year Marginal Bracket Calculation 100% Free & Private
1 Tax Profile
$
Before adding conversion amount
18%
Combined federal + state rate when you withdraw
2 Account Details
$
Current total balance
$
Partial or full conversion
3 Growth & Time Horizon
7%
Expected average growth
4 How Will You Pay Conversion Taxes?
Why it matters: Paying taxes from outside funds keeps 100% of the converted amount growing tax-free in your Roth. Withholding reduces your Roth balance and may trigger a 10% early withdrawal penalty if you're under 59½.
Conversion Summary
Tax Cost of Conversion
—
Due in conversion year
Effective Tax Rate
—
Blended rate on conversion
Roth Value at Retirement
—
100% tax-free withdrawals
Traditional After-Tax Value
—
After retirement taxes
Net Benefit of Converting
—
vs. keeping Traditional
Break-Even Point
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When Roth pulls ahead
Retirement Value Comparison
Roth IRA (Tax-Free)—
Traditional IRA (After Tax)—
Upfront Tax Cost—
Year-by-Year Projection
Year / Age Roth Balance Trad. Pre-Tax Trad. After-Tax Roth Advantage

Need an Appraisal for Your IRA Conversion?

If your IRA holds private business interests, LLC membership units, or alternative assets, you need a qualified Fair Market Value appraisal for the conversion.

Get Your IRA Appraisal →

This calculator is for educational and illustrative purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently; consult a qualified tax advisor or CPA before making conversion decisions. Results assume constant rates of return and tax rates, which will vary in practice. 2026 tax brackets are estimates based on IRS inflation adjustments.

Understanding Roth IRA Conversions

What Is a Roth IRA Conversion?

A Roth IRA conversion involves transferring funds from a Traditional IRA, SEP IRA, SIMPLE IRA, or employer-sponsored retirement plan (like a 401(k)) into a Roth IRA. The key trade-off: you pay income taxes on the converted amount now, in exchange for tax-free growth and tax-free withdrawals in retirement.

Unlike Traditional IRA withdrawals, which are taxed as ordinary income, qualified Roth IRA distributions are completely tax-free. This includes all investment gains, dividends, and appreciation earned over the years.

When Does a Conversion Make Sense?

A Roth conversion tends to be most beneficial when:

Your current tax rate is lower than your expected retirement rate. If you're in a low-income year (job transition, early retirement, sabbatical), converting while in a lower bracket locks in that rate permanently.

You have a long time horizon. The longer your Roth has to grow tax-free, the more the upfront tax cost is offset by decades of untaxed compounding.

You want to reduce future RMDs. Traditional IRAs require Required Minimum Distributions starting at age 73 (75 after 2033). Roth IRAs have no RMDs during the owner's lifetime, giving you more control over retirement cash flow and tax planning.

You can pay the taxes from outside funds. Using non-retirement money to cover the tax bill keeps 100% of the converted amount working for you inside the Roth.

The IRA Conversion & Business Valuation Connection

Many self-directed IRAs hold non-publicly traded assets: private company stock, LLC membership interests, partnership shares, or real estate holding entities. When converting these assets from a Traditional IRA to a Roth IRA, the IRS requires a qualified Fair Market Value (FMV) appraisal to determine the taxable amount of the conversion.

An independent, USPAP-compliant business valuation ensures you pay the correct amount of tax — not too much (overpaying the IRS unnecessarily) and not too little (risking penalties and audits). This is especially critical for closely-held business interests where there is no public market price.

Frequently Asked Questions

What is a Roth IRA conversion? ▼
A Roth IRA conversion is the process of moving money from a Traditional IRA (pre-tax) into a Roth IRA (after-tax). You pay income tax on the converted amount in the conversion year, but all future growth and qualified withdrawals are completely tax-free. There is no income limit on conversions, and no limit on the amount you can convert.
How much tax will I owe on a Roth conversion? ▼
The converted amount is added to your ordinary taxable income for the year. The tax owed depends on your marginal federal bracket, state income tax, and total income. This calculator uses 2026 marginal tax brackets to compute the exact federal tax on your conversion, accounting for the fact that the conversion may push part of the amount into a higher bracket.
Can I undo a Roth IRA conversion? ▼
No. Since the Tax Cuts and Jobs Act of 2017, Roth conversions are irrevocable. You cannot recharacterize a conversion back to a Traditional IRA. This makes it critical to model the tax impact carefully before converting.
Should I convert all at once or over multiple years? ▼
Spreading conversions over several years (a "Roth conversion ladder") can keep you in lower tax brackets each year, reducing the overall tax cost. This is particularly useful if a single large conversion would push you into the 32% or 35% bracket. Use this calculator to model different conversion amounts and find the sweet spot.
Do I need an appraisal for my IRA conversion? ▼
If your IRA holds publicly traded stocks and mutual funds, no appraisal is needed — the market price determines Fair Market Value. However, if your self-directed IRA holds private business interests, LLC membership units, real estate partnerships, or other alternative investments, the IRS requires a qualified independent appraisal to determine the FMV for tax purposes. Learn more about IRA conversion appraisals →
What is IRMAA and how does a conversion affect it? ▼
IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge on Medicare Part B and Part D premiums for higher-income individuals. A large Roth conversion can increase your Modified Adjusted Gross Income (MAGI), potentially triggering IRMAA surcharges two years later. For 2026, IRMAA surcharges begin at $103,000 (single) or $206,000 (married filing jointly) of MAGI.