Is converting your IRA to a Roth actually worth it?
Enter your balance, conversion amount, current and retirement tax brackets, and time horizon to compare Roth vs Traditional after-tax value — and find your break-even point.
Why it matters: A Roth conversion means paying tax now for tax-free growth later. Whether that wins depends on your bracket today vs. in retirement — this shows the math both ways.
Example calculation
You convert $50,000 from a Traditional IRA while in the 22% bracket and pay the $11,000 tax from outside funds. You expect a 7% return over 20 years and a 24% bracket in retirement.
The full $50,000 keeps compounding tax-free in the Roth, while the Traditional path would lose 24% at withdrawal. Because your retirement bracket is higher than today's, the Roth ends up worth meaningfully more — and paying the tax from outside funds is what preserves that edge.
How to use this Roth conversion calculator
Enter your Traditional IRA balance, how much you want to convert, your current and expected retirement tax brackets, and your time horizon. The calculator shows whether paying tax now on a Roth conversion will leave you better off at retirement than deferring taxes in a Traditional IRA.
Tip: It almost always makes sense to pay the conversion tax from outside funds rather than from the IRA itself. Paying from the IRA reduces the amount that gets to grow tax-free.
Traditional IRA vs. Roth IRA: the core difference
A Traditional IRA is funded with pre-tax dollars. You get a deduction now, but pay ordinary income tax on every dollar you withdraw in retirement. Required Minimum Distributions (RMDs) begin at age 73.
A Roth IRA is funded with after-tax dollars. You get no deduction now, but all growth and qualified withdrawals are completely tax-free. There are no RMDs during your lifetime.
A Roth conversion moves money from Traditional to Roth, triggering tax now in exchange for tax-free status going forward.
When does a Roth conversion make the most sense?
- Your current bracket is lower than your expected retirement bracket. If you expect to pay more tax later, paying now is the better deal.
- You had an unusually low-income year — job change, sabbatical, early retirement before Social Security begins.
- You want to reduce future RMDs. Large Traditional IRA balances create forced taxable withdrawals at 73. Converting reduces that burden.
- You want to leave money to heirs. Roth IRAs pass tax-free to beneficiaries; Traditional IRAs pass with embedded tax liabilities.
The 2026 federal tax brackets
The 2026 tax brackets apply to income from January 1, 2026. The conversion amount is added to your ordinary income in the year you convert.
| Rate | Single | Married filing jointly |
|---|---|---|
| 10% | $0 – $12,400 | $0 – $24,800 |
| 12% | $12,400 – $50,400 | $24,800 – $100,800 |
| 22% | $50,400 – $105,700 | $100,800 – $211,400 |
| 24% | $105,700 – $201,775 | $211,400 – $403,550 |
| 32% | $201,775 – $256,225 | $403,550 – $512,450 |
| 35% | $256,225 – $640,600 | $512,450 – $768,700 |
| 37% | $640,600+ | $768,700+ |
Brackets are taxable-income ranges for tax year 2026 (IRS inflation-adjusted figures). Last updated January 2026. Verify against IRS guidance before filing.
Keep planning
Use the compound interest calculator to model your Roth's tax-free growth, and the long-term capital gains calculator to estimate tax on assets held outside retirement accounts. This tool is an educational estimate based on your inputs — not tax or investment advice. Roth conversions are irreversible, can affect Medicare IRMAA and ACA subsidies, and have a five-year rule on converted amounts. Consult a qualified tax professional before converting.
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Frequently asked questions
Educational use only — not financial advice
StockLeo is for educational purposes only and does not provide financial, investment, legal, or tax advice. Calculations are estimates and may not reflect your full tax or financial situation. Consult a qualified professional before making financial decisions.