Roth BETR Calculator

Estimate the break-even future tax rate (BETR) where a Roth conversion equals keeping the Traditional account.

Taxes Owed Today

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Long-Term Savings (Year 20)

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Effective Tax Rate (Future Value / Taxes Paid)

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Client & Account Inputs

Account type * Traditional IRA / 401(k) balance ($) *

Amount to convert ($) *

Range: $1 – $10,000,000 · Max by balance applies

% of IRA Already Taxed *

Current tax filing status * Current federal marginal rate *

Projected future filing status * Projected future federal marginal rate *

Current state & local tax rate *

Future state & local tax rate *

Years until first withdrawal * Expected annual return *

How will conversion taxes be paid?

From taxable — tax-efficient (QDI/LTCG) From taxable — tax-inefficient (interest/non-QDI) From cash (checking/savings) Withheld from IRA (reduces amount converted)

Taxable/Cash Assumptions (required)

Dividend yield (taxable) *

Dividend tax rate (federal) *

% + S/L

Capital gains tax rate (federal) *

% + S/L

Cash yield (%) *

% (taxed at ordinary + S/L)

Annual backdoor Roth contribution ($) *

This tool does not model bracket creep, NIIT phase interactions, AMT, or phaseouts beyond simple thresholds. Educational use only.

Detailed Results

Calculating…

Sources: IRS (2025–2026 thresholds). Educational illustration only.