Please fill all required fields

    Tax Savings from Converting a Regular IRA to a Roth IRA

         
    This spreadsheet compares the taxes due upon converting a regular IRA to a Roth IRA to the present value of total taxes saved in retirement on the distribution from a regular IRA. If the net present value of taxes saved is positive, it may be advantageous for you to convert. If the net present value of taxes saved is negative, it may not be advantageous for you to convert. Please consult with your tax advisor to determine if you should convert your traditional IRA to a Roth IRA.
    Input Variables:    
    Current Age
    Assumed Investment Return
    Current Marginal Tax Rate (Federal and State)
    Effective Tax Rate in Retirement (Federal and State) on Retirement Plan Distributions
    Regular IRA Account Value
    Cumulative After-Tax Contributions
    Results:    
    A. Taxes Due Upon Conversion:  
    Amount of Gain at Conversion
      Taxes Due Upon Conversion
    B. Present Value of Total Taxes Saved:  
    Fair Market Value of Regular IRA Account at the Age of 70
    Total Amount of Distributions (Begin at age 70 and go for 30 years)
    Annual Distribution Amount
    Less: Basis
    Taxable Gain per Year
      Taxes Saved per Year in Retirement
    Total Amount of Taxes Saved in Retirement
    Present Value of Total Taxes Saved in Retirement at the age of 70
      Present Value of Total Taxes Saved in Retirement at your current age
    C. Net Present Value of Taxes Saved:  
    Present Value of Total Taxes Saved in Retirement at your current age
      Less: Taxes Due Upon Conversion
      Net Present Value of Taxes Saved (If positive - Convert, If Negative - Do not)