Retirement Planner Calc

Last Updated: May 2026

Roth Conversion Calculator

Should you convert your Traditional IRA to a Roth IRA in 2026?

The answer depends on one comparison: your tax rate today versus your expected tax rate in retirement. If you pay taxes now at a lower rate than you will pay in retirement, converting now saves money. If your retirement tax rate will be lower, a Traditional IRA is better.

This calculator shows the tax cost of converting, the projected tax-free growth in a Roth account, and the break-even year when the conversion starts to pay off. It also flags key 2026 rules: workers earning over $145,000 in Social Security wages must make 401(k) catch-up contributions as Roth starting in 2026 under SECURE 2.0.

Enter your current income and the amount you want to convert. The calculator adds the conversion amount to your taxable income and shows the resulting tax bill at 2026 federal brackets.

Your Inputs

Tax cost of converting now

$14,500

Estimated 29% effective rate on the $50,000 converted.

Break-Even Analysis

Converting now pays off if your tax rate in retirement is higher than 29%.

Years to break even at projected retirement rate (27%): does not break even

Side-by-Side Comparison

Convert NowKeep Traditional
Tax paid today$14,500$0
Balance in retirement$69,834$98,358
Future RMDs (annual)None~$2,919/year
Net after-tax in retirement$69,834$71,801
Net advantageTraditional wins by $1,967

2026 Roth IRA phase-out: $153,000–$168,000 single / $242,000–$252,000 married.

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Frequently Asked Questions

Roth conversion makes the most financial sense when your current tax rate is lower than your expected future tax rate. The ideal conversion window is typically between retirement and age 73 — after earned income has dropped but before RMDs begin forcing taxable withdrawals. During this window, you can convert amounts that keep your taxable income in the 12% or 22% bracket, paying taxes now at a lower rate to avoid higher taxes later. It also makes sense when you want to reduce future RMDs, leave tax-free assets to heirs, or diversify your tax exposure in retirement.
A backdoor Roth conversion is a two-step process for high earners who exceed the Roth IRA income limits. In 2026, direct Roth IRA contributions are phased out between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for married filing jointly. High earners above these thresholds make a nondeductible contribution to a Traditional IRA and then immediately convert it to a Roth IRA. Because the contribution was made with after-tax dollars, there is little or no additional tax owed on the conversion itself. The backdoor Roth has no income limit — anyone can do it.
The pro-rata rule applies when you have a mix of pre-tax and after-tax money in your Traditional IRA. If you attempt a backdoor Roth conversion but have existing pre-tax IRA funds, the IRS treats all your IRA assets as a single pool for tax purposes. The taxable percentage of your conversion is calculated proportionally across all your IRA assets — not just the non-deductible portion. For example, if you have $90,000 in pre-tax IRA funds and make a $10,000 nondeductible contribution, 90% of any conversion is taxable. The pro-rata rule can significantly complicate backdoor Roth strategies when large pre-tax IRA balances exist.
The optimal annual Roth conversion amount is typically the amount that fills your current tax bracket without pushing income into the next bracket. For a single filer in the 22% bracket in 2026, that means converting enough to bring total taxable income up to $103,350 — the top of the 22% bracket — without crossing into 24%. Converting a predictable amount each year in the years between retirement and age 73 creates a systematic tax-efficient ladder that reduces the Traditional IRA balance subject to future RMDs. A financial advisor or CPA can model the optimal annual conversion amount for your specific situation.
Yes — they are treated differently by the IRS. Roth IRA contributions have income limits ($153,000–$168,000 single, $242,000–$252,000 married in 2026) and must come from earned income. Roth conversions have no income limits and no earned income requirement — anyone with a Traditional IRA can convert at any time. The five-year holding rule also differs: each conversion has its own five-year clock for penalty-free withdrawal of converted principal, while Roth IRA earnings require a five-year account age plus age 59½ for penalty-free withdrawal.
Roth IRA assets are exempt from RMDs during the owner's lifetime. Every dollar successfully converted from a Traditional IRA to a Roth IRA is permanently removed from future RMD calculations. This means lower taxable income in retirement, potentially lower Medicare premiums (which are income-based under IRMAA), and tax-free growth for heirs. For retirees with large Traditional IRA balances facing significant future RMDs, a systematic Roth conversion strategy in the years before age 73 can meaningfully reduce lifetime tax liability.

How a Roth Conversion Works

A Roth conversion is a taxable transfer. You move money from a Traditional IRA (or 401k), where contributions were made pretax, to a Roth IRA, where growth and withdrawals are tax-free.

The converted amount is added to your ordinary income in the year of conversion. If you convert $50,000 and your other income is $60,000, you report $110,000 in taxable income for that year.

Once the money is in the Roth account, it grows tax-free. You never owe taxes on gains or qualified withdrawals. There are no RMDs.

When Roth conversions make sense:

  • Your income is unusually low this year (job transition, early retirement, business loss)
  • You are in a low bracket now but expect higher brackets in retirement
  • You have RMDs coming that will push you into higher brackets
  • You want to leave tax-free money to heirs

When they do not make sense:

  • You need the money soon and will have to pay taxes and penalties to access it
  • Your tax rate will be lower in retirement than it is now
  • You do not have cash outside the IRA to pay the conversion tax

Projections are estimates based on your inputs and assumed rates of return. Actual investment performance, tax rates, and Social Security benefits will differ. This calculator does not constitute financial, tax, or legal advice. Consult a qualified financial advisor for personalized retirement planning.

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