Roth IRA Conversion Calculator

Roth IRAs offer many benefits. But moving assets to Roth IRAs from traditional, SEP or SIMPLE IRAs could cost you. Our calculator helps you estimate if making a Roth conversion is beneficial to you.

Consider this important information before converting assets to a Roth IRA:

  • You'll generally be subject to ordinary income tax on the amount converted (specifically, on pre-tax contributions and investment gains).
  • If you pay taxes with money distributed from your IRA, you'll lose the benefits of potential tax-free growth on that amount within the Roth IRA.
  • If you're under age 59½, you may be subject to a 10% federal tax penalty for money withdrawn from an IRA to pay tax on a conversion. You may also have to pay state tax penalties.
  • For investors in lower tax brackets that meet certain modified adjusted gross income (MAGI) requirements, IRA contributions may be tax deductible. Roth IRA contributions aren't tax deductible (although qualified distributions of Roth earnings are tax-free and penalty-free).
  • After conversion, a Roth IRA must be opened for five tax years before earnings can be withdrawn tax-free if certain other requirements are also met. These include those taken after age 59½, for death or disability, or for a first time home purchase.
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The Roth Conversion Results at Retirement chart is based on inputs that are hypothetical. Information and interactive calculators are available to you as self-help tools for your independent use and aren't intended to provide legal, tax or investment advice. We can't and don't guarantee their applicability or accuracy to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals, such as your legal or tax adviser, for all personal finance issues and your specific situation.

There may be a delay between Roth Conversion Results at Retirement updates and the effective date of changes to the tax code or other rule changes.

These scenarios are hypothetical. Future rates of return can't be predicted with certainty. There is no assurance that you will actually achieve these results. Investments that pay higher rates of return are generally subject to higher risk and volatility.Conversions from a Traditional IRA to a Roth are generally subject to ordinary income taxes. Please consult with a tax advisor regarding your particular situation.The contents of this document are not intended to be, and are not, legal or tax advice. The applicable tax law is complex, the penalties for non-compliance are severe, and the applicable tax law of your state may differ from federal tax law. Therefore, you should consult your tax and legal advisers regarding your specific situation.USAA means United Services Automobile Association and its affiliates. Life insurance and annuities provided by USAA Life Insurance Co., San Antonio, TX, and in NY by USAA Life Insurance Co. of New York, Highland Falls, NY. Other life and health insurance from select companies offered through USAA Life General Agency, Inc. (known in CA (license #0782231) and in NY as USAA Health and Life Insurance Agency). USAA Federal Savings Bank offers deposit, credit card, consumer lending, mortgage, and other banking products and services. USAA Federal Savings Bank is a Member of FDIC. Credit card, mortgage and other lending products not FDIC-insured.NC