Should I convert to a Roth IRA?

Roth IRA is a great way for clients to create tax-free income from their 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. Individuals of all income levels are 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
The information provided here is to assist you in planning for your future. 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 be relied upon when coordinated with individual professional advice.

Any rate of return entered into the interactive calculator to project 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.

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