Help & documentation / Roth conversion

How to read the Roth conversion calculator

Compare a multi-year Roth conversion policy with doing no conversion. The model follows taxes, Medicare income-related premiums, required distributions, spending, and all three account types so the comparison ends in projected after-tax wealth rather than gross balances alone.

What it calculates

A Roth conversion moves eligible pre-tax retirement money into Roth savings. The taxable portion is generally included in ordinary income for the conversion year. Paying tax sooner may reduce later taxable withdrawals and required minimum distributions, but the early tax cost, other income, Social Security taxation, Medicare premiums, state tax, and the source used to pay tax can change whether the conversion improves projected after-tax wealth.

This calculator projects one household year by year from the starting tax year through the planning age. Every selected conversion policy receives its own automatically generated no-conversion baseline with the same starting balances, income, spending, returns, and horizon. That matched baseline is the reference for the advantage, break-even, lifetime-tax, RMD, and ending-wealth results.

Within each year the model takes any RMD first, funds spending with any needed Traditional withdrawal, resolves the entered conversion policy, calculates ordinary federal and estimated state tax, applies Medicare IRMAA from the two-year MAGI lookback, finishes funding spending and taxes, and then grows the remaining balances. This order prevents an RMD from being treated as a Roth conversion and limits only discretionary bracket-fill conversions to the selected taxable-income ceiling.

Questions it answers

Best tested strategy

Tests each annual real conversion amount across each eligible start age and continues that amount through the common conversion end age. Feasible plans rank by after-tax wealth at the planning age, with lifetime tax and total converted used only to break ties.

Fill a bracket

After required spending is funded, solves the annual conversion that approaches the top of the selected 10%, 12%, 22%, 24%, 32%, or 35% federal bracket—or a custom taxable-income ceiling—after deductions and taxable Social Security are recalculated. A required Traditional withdrawal can put taxable income above that ceiling.

Fixed annual conversion

Attempts the entered today’s-dollar amount in each year of the conversion window, limited by available eligible pre-tax money after any RMD.

No conversion

Projects the household without voluntary conversions. Use it alone to inspect the baseline or beside other scenarios to compare different assumptions.

Major inputs

Starting year, birth years, and filing status
The starting year anchors the tax-law schedule. Birth years determine household ages and the owner’s RMD start age. Filing status selects brackets, deductions, Social Security thresholds, and Medicare thresholds.
Retirement and planning ages
Pre-retirement income stops and modeled retirement spending begins at retirement. The planning age is the comparison endpoint, not a forecast of lifespan.
Pre-tax, Roth, and taxable balances
Only the named owner’s pre-tax balance is converted and receives RMDs. Roth and taxable savings are household balances. The withdrawal order uses cash first, then taxable savings, additional pre-tax withdrawals, and Roth.
Income and spending
Pre-retirement ordinary income applies before retirement; pension and other income applies from retirement. Social Security starts at the entered age, and the federal calculation determines the taxable part. Spending is entered in today’s dollars and excludes taxes and Medicare premiums, which the model adds. Because there is no pre-retirement spending or savings-rate input, unspent wages and benefits before retirement affect tax but are not added to the modeled accounts; net RMD proceeds are retained.
Conversion window and policy
The window bounds voluntary conversions. A fixed plan uses one annual real amount; bracket filling solves against taxable income; optimization tests the amount and start-age grid; no conversion applies zero.
Tax payment source
Paying from taxable savings preserves the full conversion in Roth but must remain affordable after spending. IRA withholding reduces what reaches Roth and is not allowed for a conversion before age 60 in this model.
Return and inflation
Pre-tax and Roth balances share the retirement-account return. Taxable savings use a separate after-tax return. Inflation restates today’s-dollar flows and estimates indexed thresholds in future years.
Deductions and prior MAGI
The standard option uses modeled deductions; the itemized option uses the amount entered and applies the 2026 overall limitation on the tax benefit of itemized deductions above the 37% bracket threshold. Prior MAGI supplies the first two years of the Medicare two-year lookback when relevant.
Medicare enrollment and coverage
Owner and spouse enrollment ages control when IRMAA begins. Select Part B, Part D, both, or no enrollment for each person; the model charges only the selected component surcharges while that person is enrolled.
State estimate and move age
The model applies the current effective ordinary-income rate before the move age and the future rate afterwards. These are planning rates supplied by you, not a state return or state-law database.
Pre-tax drawdown years
At the planning age, remaining pre-tax wealth is valued as equal withdrawals over this many years under planning-year tax assumptions. That reserve keeps a gross Traditional balance from being compared directly with Roth cash.

What the results mean

Ending after-tax wealth
Roth and taxable balances plus the modeled spendable value of the remaining pre-tax balance at the planning age, less a reserve for IRMAA fixed by the final two modeled MAGI years but payable after the horizon. It is a common-dollar planning estimate, not liquidation proceeds or an estate-tax calculation.
Spending feasible
The strategy meets modeled spending, taxes, and Medicare costs without creating negative account balances. If a policy requires tax from taxable savings and that tax is unaffordable, the model does not silently switch the payment source.
Total converted, moved to Roth, and conversion tax
Total converted is the gross pre-tax conversion. Moved to Roth is the net transfer after any IRA withholding. Conversion tax is the incremental tax associated with those conversions; total lifetime tax also includes ordinary taxes that would have happened without a conversion.
Lifetime federal tax, state tax, and IRMAA
Federal and state tax are summed through the planning age. IRMAA also includes the two later premium years determined by the final two modeled MAGI years, even though the annual table and charts stop at the planning age. A conversion may raise these costs in early years and reduce later taxes or premiums; lower lifetime tax does not by itself guarantee higher ending wealth.
First RMD
The first modeled required distribution from the owner’s remaining pre-tax balance. Conversions can reduce it, but the applicable age and prior year-end balance still control it.
After-tax advantage
The selected strategy’s projected after-tax wealth minus its matched no-conversion baseline at each age. A positive value means the strategy leads under the entered assumptions.
Break-even age
The first age on or after an actual conversion at which the after-tax advantage is nonnegative and stays nonnegative through the planning horizon. A temporary crossover that later reverses is not called break-even.
Best tested heatmap cell
The tested start age and annual amount with the highest ranked feasible outcome. Neighboring cells show whether the result is sensitive to small changes in either input.
Taxable income and bracket room
Shows final federal taxable income after deductions against the selected bracket ceiling. The tooltip retains the underlying ordinary income, taxable Social Security, RMD, additional withdrawal, and conversion amounts. State tax and IRMAA can still make filling a federal bracket unattractive.
Account mix
Shows how pre-tax, Roth, and taxable balances change under the strategy or baseline. The selected display is preserved in scoped exports so the downloaded chart matches the screen.

Worked example

A retirement-to-RMD conversion window

Hypothetical example: an owner born in 1964 starts in 2026 with $1.5 million pre-tax, $150,000 Roth, and $300,000 taxable. The household retires at 65, plans through 90, receives $20,000 of other retirement income and $36,000 of Social Security from 70, spends $80,000 per year in today’s dollars, and tests conversions from 65 through 70.

Result to inspectWhat to look forWhy it matters
Best tested mapThe highlighted amount/start-age pair and the nearby cellsA broad region of similar results is less sensitive to a small input change than a single isolated high cell.
Income and taxesWhether conversions fill low-income retirement years, make more Social Security taxable, or trigger IRMAA two years laterThe nominal bracket alone does not capture every cost of additional MAGI.
Account mix and RMDHow much earlier conversion reduces later pre-tax balances and the first RMDMoving money to Roth changes both the timing of tax and the source of later spending.
After-tax advantageWhether and when the strategy recovers its early tax cost and remains aheadEnding gross balances can look better while spendable after-tax wealth is worse.
Scenario comparisonRepeat with a later Social Security start, a different state move age, or a lower returnScenarios expose which assumptions, rather than the chosen policy alone, drive the result.

The correct reading is not “the highlighted cell is what this household should convert.” It is “among the displayed candidates, this cell produced the highest modeled after-tax wealth while meeting spending under these assumptions.” Tax returns, account eligibility, cash availability, and current law still need separate review.

Assumptions and limitations

Future tax rules are estimates

The model begins with published 2026 federal brackets, deductions, Medicare premiums, and IRMAA thresholds. It raises indexed values in unpublished future years with the entered inflation rate while leaving non-indexed Social Security thresholds unchanged. The $500,000 single/$750,000 joint top IRMAA threshold stays frozen through 2027, then receives its separate 2028 inflation base and statutory $1,000 rounding. Congress, the IRS, CMS, and SSA can change rules and amounts, and temporary provisions do not become permanent merely because the projection continues.

The annual model simplifies real cash flow

Each year applies one state transition: RMD, spending-driven taxable withdrawal and conversion-policy resolution, tax and IRMAA, remaining spending funding, then growth. Real transactions happen throughout a year, withholding and estimated payments have due dates, RMD timing can differ, and markets do not deliver one steady annual return. The model floors accounts at zero and records unmet spending rather than borrowing or inventing cash.

The household and tax scope is deliberately bounded

Married filing jointly can include a spouse’s age, Social Security, deduction, Medicare enrollment age, and covered Part B/Part D components, but only the named owner’s pre-tax retirement account is converted or receives RMDs. The model assumes all Traditional money is untaxed and does not model nondeductible basis or the Form 8606 pro-rata rule.

  • No ACA premium tax credits, alternative minimum tax, net investment income tax, tax credits, qualified charitable distributions, capital-gains basis, estate tax, or state-specific deductions and brackets.
  • No separate spouse retirement accounts, death or survivor-filing transition, inherited-account rules, qualified-plan eligibility, or custodian restrictions.
  • No early-distribution penalty analysis, Roth withdrawal ordering, or separate five-year clock for each conversion lot.
  • No market sequence, investment fees, investment-location differences, or guarantee that the entered returns will occur.

Sources and further reading

Sources reviewed August 2026. These official sources explain the rules used to seed the planning model; they do not endorse this calculator or its assumptions.