How to Use the Conversion Tax Calculator

To use the conversion tax calculator, first input the amount you plan to convert from your IRA or 401k to a Roth account. Enter your current tax rate, and any additional income you may have. The calculator will then estimate the tax you will owe on the conversion.

Understanding Tax on IRA and 401k Conversions

Converting your IRA or 401k to a Roth IRA can be a smart financial move, but it is important to understand the tax implications. When you convert, the amount you transfer is treated as taxable income, and you will need to pay taxes on it. Use our calculator to estimate how much tax you will owe.

FAQs on IRA and 401k Conversion Tax Calculator

What is a Roth conversion?

A Roth conversion involves moving funds from a traditional IRA or 401k to a Roth IRA, which allows for tax-free withdrawals in retirement.

Why should I convert my IRA or 401k to a Roth?

Converting to a Roth IRA can offer tax-free withdrawals in retirement and potentially lower your taxable income in the future.

Will I owe taxes on a Roth conversion?

Yes, you will owe taxes on the amount converted as it is treated as taxable income for the year of conversion.