Should I Convert to a Roth IRA?

A Roth IRA is a way for you to create tax-free income from your retirement assets. Yet, keep in mind that when you convert your taxable retirement assets into a Roth IRA, you will generally pay ordinary income tax on the taxable amount that is converted. The conversion amount is not subject to the 10% early distribution penalty. Your tax-free potential is maximized if you pay the taxes from your current income or personal savings and not from your IRA. Beginning in 2010, individuals of all income levels are now eligible to convert to a Roth IRA.
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
No bank guarantee • Not a deposit • Not FDIC/NCUA insured
May lose value • Not insured by any federal government agency

Pacific Life Insurance Company is the administrator for Pacific Funds. It is not a fiduciary and therefore does not give advice or make recommendations regarding investment products.

The results and explanations generated by this calculator may vary due to user input and assumptions. Pacific Funds does not guarantee the accuracy of the calculations, results, explanations, nor applicability to your specific situation. We recommend that you use this calculator as a guideline only and ultimately seek the guidance of an experienced professional. CalcXML, the provider of this information and interactive calculator, is an independent third-party and is not affiliated with Pacific Funds.


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