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Should you do a Roth conversion this year?

Enter your numbers and I'll translate the financial jargon into a plain-English answer — including what it costs with federal and state taxes, a hidden tax effect on Social Security benefits, Medicare exposure, and the odds you'll live long enough to benefit.

Your traditional IRA holds money the IRS hasn’t taxed yet — deferred, not exempt. After 73, annual withdrawals become required, adding taxable income each year. A Roth conversion pays that tax now, at a known rate — typically spread over several years — so everything that follows grows completely tax-free, with no forced withdrawals. This tool works out which path costs you less.

Have a 401(k) instead of an IRA? click to expand

A traditional 401(k) works the same way — it's pre-tax money the IRS hasn't touched yet. You have two options:

Option 1: Roll your 401(k) into a traditional IRA first (a free, tax-free transfer your provider handles), then use this calculator to decide about converting. This is the most flexible path.

Option 2: Some 401(k) plans let you convert to Roth directly inside the plan — check with your HR department or 401(k) company.

Have an old 401(k) from a previous job? You can roll it into a traditional IRA at any time — no deadline, no penalty. This calculator applies to that money too.

Illustrative Scenarios with a $300K IRA

$198K
~66%
estimated net
⚠️ annual withdrawals required
$102K
~34%
to IRS
Traditional IRA
Large tax owed on every withdrawal — and it compounds too
VS
$234K
~78%
tax-free · guaranteed
✓ no withdrawals required
$66K
~22%
tax paid at conversion
After Converting
More take-home — grows tax-free from here
Converting saves ~$36K in total taxes vs keeping traditional
Locks in a known rate — more take-home, no forced withdrawals

Want more detail? Scroll down to plug in your own numbers ↓

1
Fill in your details — approximate is fine
2
See the true all-in cost — including the often-missed hidden tax on Social Security
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Use the Bottom Line as a starting point with your advisor
Do I need a Roth account already?
No. If you don't have one, the conversion creates it. The company holding your IRA (Fidelity, Vanguard, Schwab, etc.) handles this automatically when you convert.
Is there an income limit?
No — not since 2010. Anyone can convert regardless of income. You owe regular income tax on the converted amount — there's no earning cap.
Do I have to convert everything at once?
Not at all. You can convert any dollar amount. Converting a smaller amount to stay within your current tax bracket is one of the most common strategies.
Is there a penalty for converting?
No early withdrawal penalty on conversions, even before age 59½. You only owe regular income tax on the converted amount.
Is there a deadline each year?
Yes — December 31 of the tax year. Conversions processed by year-end count for that tax year. January 1st starts a new window.
When do I pay the tax?
When you file your return — not immediately. For smaller conversions, your regular withholding may already cover the bill. The larger the conversion, the more likely estimated taxes are due by January 15th to avoid an underpayment penalty. Your tax software will calculate exactly what you owe and when.
Three example scenarios across the spectrum — click any to explore:

Ready to see your own numbers?

Fill in what you know below — rough estimates are fine. Results update instantly.

EXAMPLE
1

About You

In plain English: Most married couples file "jointly," which usually means lower taxes. "Separately" is uncommon and often more expensive — especially for Medicare. "Single" is for unmarried filers; "Head of Household" applies to some single parents.
Used only for survival probability estimates
New for 2026: A new law gives people 65+ an extra $6,000 tax deduction per qualifying person, on top of the regular standard deduction. This can meaningfully reduce the tax cost of a conversion. Phases out above $75K (single) or $150K (joint).
Why this matters: State income taxes can add 3–13% to the cost of a Roth conversion. Some states also exempt IRA withdrawals in retirement — meaning you'd pay state tax on the conversion today but nothing when you withdraw later, which affects the comparison. Selecting your state adds these numbers automatically.
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Your Accounts & Income

What to include: Wages, self-employment, pension payments, rental income, and other regular income. Do NOT include Social Security here — enter that in the field below so I can accurately model how converting triggers extra tax on your Social Security. Rough estimates are fine.
Why this field changes everything: Social Security benefits become partly taxable when your income reaches certain thresholds. A Roth conversion can push more of your SS into taxable territory — a hidden extra cost called the Social Security tax effect. At worst, each $1 converted triggers 85¢ more of SS taxation, pushing your real tax rate to ~40% even in the 22% bracket. Enter $0 if you do not receive SS yet.
Enter your total annual SS benefit, or $0 if not yet receiving
What is this field? A 3.8% federal surcharge applies to investment income — dividends, capital gains, rental income — once your total income tops $200,000 (single) or $250,000 (married). A Roth conversion counts as income and can push you over these thresholds, triggering extra tax on money you'd otherwise owe nothing on. Enter your annual investment income here, or $0 if this doesn't apply to you.
Not sure? Enter $0 — only relevant if you have investment income outside your retirement accounts
How much is right? Common strategies: convert just enough to fill up your current tax bracket, or stay below a Medicare income threshold. This calculator shows both sweet spots. There's no income limit on conversions — anyone can do it in any year.
What to enter: Add up all your pre-tax retirement accounts — traditional IRAs, 401(k)s, 403(b)s, SEP-IRAs. Don’t have a statement handy? A rough estimate is fine for planning purposes. Every dollar here will eventually be taxed when withdrawn.
Enter $0 if you do not have one yet
Have you ever contributed already-taxed money to a traditional IRA? If so, that amount is called your "basis." It matters because the IRS requires every conversion to be a proportional mix of taxed and untaxed money — you can't cherry-pick just the pre-tax portion. The already-taxed share converts tax-free. If this applies to you, the number lives on IRS Form 8606, line 14. Most people enter $0 — the vast majority of IRA money is pre-tax.
Don’t know this? Enter $0 — it only applies if you’ve made after-tax IRA contributions, and most people haven’t
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Assumptions & Medicare

7%
What to use? Historically ~7% after inflation for a diversified stock portfolio. A balanced mix of stocks and bonds might average 5–6%. Try sliding it to see how sensitive your results are.
Federal only — I add your state rate automatically. Enter your expected federal bracket rate on IRA withdrawals. Select your state above and I'll fold the state rate in automatically so the comparison is apples-to-apples. Use the estimator below if you are unsure.
Not sure? Calculate your retirement rate here ↗

Enter your expected retirement income sources and I'll compute the marginal federal rate on your IRA withdrawals — including how conversions can trigger extra tax on Social Security benefits.

This matters more than people expect: Paying from outside savings puts the full converted amount into the Roth tax-free. Paying from inside means less money enters the Roth — you'd be giving up tax-advantaged growth on the tax payment itself.
The hidden two-year trap: Medicare charges higher premiums to people with higher incomes — called IRMAA. It's based on your income from 2 years ago. A large Roth conversion in 2026 can raise your Medicare bill in 2028. This is one of the most commonly missed costs of converting.

What counts as income for Medicare? Medicare adds up all your income from all sources — wages, IRA withdrawals, taxable Social Security, dividends, and capital gains. A Roth conversion counts as income dollar-for-dollar, which is why large conversions can push you into a higher premium tier.
📊 2026 Tax Analysis
Enter a conversion amount above to see the full tax breakdown.
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Ready to see your numbers?
1Enter your IRA or 401(k) balance and annual income in the form above
2Set a conversion amount — not sure where to start?
3Your personalized analysis appears here instantly