What is the advantage of converting to a Roth IRA?

The Roth IRA transfer calculator was designed to demonstrate the advantages of transferring an ordinary IRA account into a Roth IRA account. It determines the change in total net worth, at retirement, of your IRA if you transfer your regular IRA into a Roth IRA. It also allows you to compare the results of paying the rollover taxes out of your IRA account or paying the taxes out of pocket.

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Definitions

Amount to Transfer:Amount to transfer from a regular IRA account to a ROTH IRA.
Non-Deductible Deposits:Amount deposited to the regular that did not receive a tax deduction.
Current Tax Rate:Current marginal income tax rate.
Tax Rate at Retirement:Expected marginal income tax rate at retirement.
Investment tax rate:Expected marginal tax rate (base this on expected capital gains rate) for investments.
Current Age:Current age.
Age at Retirement:Desired age at retirement.
Years of Retirement:Years after retirement (number of years to amortize IRA account).
Rate of Return:Expected rate of return on your investments.


information and interactive calculators are made available to you as self-help tools for your independent use. We can not and do not guarantee their accuracy or their applicability to your circumstances. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

 

*These materials are not an offer to sell or solicitation of an offer to buy any security, nor shall any such security be offered or sold to any person, in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

IMPORTANT CONSUMER INFORMATION

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