Financial Calculators

What is the advantage of transferring to a Roth IRA?

In 1997, the Roth IRA was introduced. Since then, many people have converted all or a portion of their existing Traditional IRAs to a Roth IRAs, where interest earned may be completely tax-free. Is this a good option for you? A conversion has both advantages and disadvantages that should be carefully considered before you make a decision. This calculator estimates the change in total net-worth, at retirement, if you transfer your Traditional IRA into a Roth IRA.

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Definitions

Amount to transfer:Amount to transfer from a Traditional IRA account to a ROTH IRA. It is important to note that some high income households do not qualifiy for a Roth IRA conversion. Currently, anyone with an adjusted gross income over $100,000 cannot make a Roth IRA conversion. For the purposes of this calculator, we assume that your income does not limit your ability to convert to a Roth IRA.
Non-deductible contributions:Amount contributed to the Traditional IRA you are converting that was not tax deductible.
Current tax rate:Current marginal income tax rate.
Tax tate at retirement:Expected marginal income tax rate at retirement.
Investment tax rate:Expected marginal tax rate (base this on expected capital gains rate) for investments.
Current age:Current age.
Age at retirement:Desired age at retirement.
Rate of return:Expected rate of return on your investments.


information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.