Should I convert my traditional IRA to a Roth IRA?

If your income is $100,000 or less and you are single or married, filing jointly, you may be eligible to convert your traditional IRAs to a Roth IRA in order to take advantage of federally tax-free earnings in the future. Earnings are tax-free provided that you are age 59 1/2 or older (or following death or disability) and the account has been open for at least five years.

You will generally pay ordinary federal income tax (but not the 10% penalty tax) on the taxable amount that is converted. Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA.

Please note that beginning in 2010 the $100,000 adjusted gross income limit for conversions to Roth IRAs is permanently repealed. From 2010 onward, all taxpayers, regardless of income, can convert to Roth IRAs. Also, for conversions occurring in 2010, the taxpayer will only have to report one-half of taxable income in 2011 and one-half in 2012. After 2010, conversions must be reported in full in the taxable year in which they are made.
Current age 
Age when income should start 
Number of years to receive income 
Before-tax return on savings (accumulation phase) (%)help
Before-tax return on savings (distribution phase) (%)help
Income tax bracket (accumulation phase) (%)help
Income tax bracket (distribution phase) (%)help
Current IRA balance ($) 
Non-Deductible portion of IRA balance ($) 
How will you pay the conversion tax?
1) Pay taxes from non-IRA assets
2) Pay taxes from proceeds of Roth conversion
Any rate of return entered into the calculator to estimate future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

The information provided here is not intended to provide investment advice or portray actual investment results. The accuracy of this calculator and its applicability to your circumstances is not guaranteed. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should only be relied upon when coordinated with individual advice from qualified professionals.

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