Roth Conversion Calculator

A Roth conversion moves money from a pre-tax account (Traditional IRA, 401(k), 403(b), SEP) into a Roth IRA. You pay ordinary income tax on the converted amount in the year of the move; after that, the money grows tax-free and qualified withdrawals are tax-free forever. There is no 10% early-withdrawal penalty on the conversion itself, whatever your age.

The converted amount is added to your taxable income for the year and taxed at your marginal rates — the same progressive brackets as wages. If the conversion pushes you into a higher bracket, only the dollars above the threshold pay the higher rate. This calculator prices it exactly as federal_tax(income + conversion) minus federal_tax(income) using the 2026 brackets, plus any state rate you enter.

No. The $100,000 income cap on conversions was repealed in 2010 — anyone can convert any amount, at any income. Do not confuse this with Roth IRA contributions, which still phase out at higher incomes. If your income is too high to contribute directly, the usual workaround is a ‘backdoor’ contribution-then-conversion; see our IRA calculator for that boundary.

The standard strategy is fill-the-bracket: convert up to the top of your current tax bracket without spilling into the next rate — or through the 24% bracket, which is wide and only 2 points above 22%. The stopping rule: keep converting while the marginal rate on the next dollar is below the rate you expect to pay on those dollars in retirement. The optimizer tab above sizes every tier for your exact income.

There are two clocks. First, each conversion starts its own 5-year clock for the 10% early-withdrawal penalty: if you withdraw converted principal within 5 years while under 59½, the penalty applies to it. Second, for earnings to come out tax-free, your first Roth contribution or conversion must be at least 5 tax years old and you must be 59½, disabled, or a beneficiary. Converted principal itself is never taxed twice.

If you own both pre-tax and after-tax (basis) dollars in Traditional, SEP, or SIMPLE IRAs, the IRS treats every conversion as a proportional slice of the whole — you cannot convert only the after-tax part. Example: $95,000 pre-tax + $5,000 basis, convert $10,000 → $9,500 taxable and $500 tax-free, reported on Form 8606. Rolling pre-tax money into a 401(k) first can isolate the basis.

No. In any year an RMD is due, the RMD amount must be withdrawn and taxed first — it is ineligible for conversion. Only dollars above the RMD can be converted. RMDs start at 73 under SECURE 2.0 (75 if you were born in 1960 or later). This is exactly why conversions in your 60s are popular: every dollar converted now is a dollar that will never inflate a future RMD.

Yes, through IRMAA. Medicare sets Part B and Part D premiums from your MAGI two years earlier, and a conversion counts in MAGI. For 2026, the first surcharge tier starts at $109,000 single / $218,000 joint (2024 income); crossing it by even $1 adds about $95.70/month — $1,148.40/year per person. Conversions from age 63 onward land inside the lookback window for premiums at 65.

From outside funds, whenever possible. Paying from the conversion shrinks the amount that reaches the Roth — and if you are under 59½, the withheld portion is also hit with the 10% early-withdrawal penalty. The analyzer tab models both and flags the penalty.

When you expect a lower tax rate in retirement than today — then you are prepaying at a premium. Also reconsider if you will need the money within 5 years (5-year clock), if the conversion would trigger IRMAA tiers or phaseouts (student-loan payments, ACA credits) that wipe out the gain, or if paying the tax would force you to sell investments at a bad time. Conversions are irreversible since 2018, so size conservatively.

Usually yes: most states tax the conversion as ordinary income in the year it happens, at your state marginal rate. A few states exempt retirement income or have no income tax at all. Enter your state marginal rate in the calculator — it is stacked on top of the federal math for the all-in cost.

A ladder spreads one large conversion across several low-income years — typically the ‘golden window’ after retiring but before Social Security and RMDs begin, when your bracket is temporarily low. Converting, say, $50,000–$100,000 a year for 5–10 years keeps each slice in the 12–24% brackets instead of one year at 32–37%. The ladder tab above builds the year-by-year schedule with taxes, MAGI, and IRMAA flags.

No. Recharacterization of Roth conversions was eliminated starting with the 2018 tax year — a conversion is permanent once executed. (You can still recharacterize a regular IRA contribution, just not a conversion.) Double-check the amount, the bracket math, and the December 31 deadline before you confirm.

A backdoor Roth is a two-step maneuver for high earners: make a non-deductible Traditional IRA contribution, then convert it — usually quickly, so little tax is due. A regular conversion moves existing pre-tax balances and is fully taxable. The pro-rata rule is the trap in backdoor attempts with existing pre-tax IRA money. Our IRA calculator models the contribution-side choice in detail.