|Roth IRA Conversion Calculator (Advanced)
|Roth IRA Conversion Calculator (Advanced)|
With a Roth conversion, the taxable portion of your traditional IRA (deductible contributions and earnings) is subject to tax in the
year of conversion. This calculator compares two scenarios: (1) The full or partial conversion of a traditional IRA to a Roth IRA,
and (2) No traditional-to-Roth conversion. The calculator assumes that you'll pay any conversion taxes from other assets, and
determines (for scenario 2) the amount you could have earned on that "side fund" had you not converted. For both scenarios, all required
minimum distributions (RMDs) are also assumed to be invested in the side fund. The calculator estimates the IRA accumulation, and RMD
distributions, for the IRA owner and up to three beneficiaries, (you can specify one spouse beneficiary and up to two non-spouse beneficiaries).
Total after-tax dollars are compared.
The current year is assumed to be 2023.
* If you have multiple traditional IRAs, you must pro-rate your nontaxable balance among them. The IRS provides a worksheet in Publication 590-B.
Conversion taxes are paid from other assets.
The general RMD starting age is age 73 (if attain age 72 after 2022 and age 73 before 2033), then increases to age 75 thereafter.
Lifetime RMD calculation does not account for special rules that apply when spouse is more than 10 years
younger than IRA owner.
Death occurs on last day of the year. The IRA owner is generally treated as dying before the required beginning date if death occurs at age 73 (or age 75 as appropriate) or earlier. A Roth IRA owner is always treated as dying before the required beginning date.
Conversion occurs at beginning of year.
Federal estate tax and possible credit for estate taxes paid are not accounted for; state income and death taxes and credits are also not taken into account.
All taxes are paid at end of year incurred.
RMDs are deposited into a side fund and grow at the specified annual rate of retiurn. Amount(s) equivalent to any conversion tax that would be owed as a result of the Roth conversion are also deposited into the side fund and grow at the specified annual rate of return.
Assumes spouse beneficiary rolls over inherited IRA to own IRA, and RMDs start when spouse reaches age 73 (or age 75 as appropriate).
Owner's life expectancy may be taken into account for RMDs of a nonspouse beneficiary if the owner dies on or after the required beginning date.
Assumes separate accounts established for beneficiaries--beneficiaries' own life expectancy may be taken into account for RMDs if the IRA owner dies on or after the required beginning date, or if the designated beneficiary is an eligible designated beneficiary.
An eligible designated beneficiary is a designated beneficiary who is: the spouse or minor child of the IRA owner, disabled or chronically ill, or an individual no more than 10 years younger than the IRA owner. If the designated beneficiary is not an eligible designated beneficiary, the entire account must also be distributed 10 years after the death of the IRA owner. Also, when a minor child eligible designated beneficiary reaches age 21, the entire account must also be distributed within 10 years after such year.
Any information provided has been prepared from sources believed to be reliable but is not guaranteed, does not represent all available data necessary for making investment decisions and is for informational purposes only.
This communication is strictly intended for individuals residing in the state(s) of AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, GU, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT and VT. No offers may be made or accepted from any resident outside the specific states referenced.
|Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2023.