Roth Conversion Break-Even Calculator

Find the future tax rate at which converting today breaks even with staying in a Traditional IRA. If your expected future rate is higher than the break-even — converting likely makes sense.

Conversion details

Amount to convert ?

Typical conversions: $25,000–$200,000/year

Traditional IRA / 401(k) balance

Total pre-tax account balance

Growth & time

Expected annual return ?

Years until first withdrawal ?

yrs

How will you pay the conversion taxes?

Taxable account (efficient)

Paying from investments with qualified dividends or long-term gains — the recommended approach

Taxable account (inefficient)

Paying from interest-bearing or actively traded investments with higher tax drag

Cash (checking / savings)

Paying directly from a cash account — lowers the break-even significantly

Withheld from IRA

Taxes come out of the conversion itself — generally the least tax-efficient option

Current tax rates (this year)

Federal marginal rate ?

State & local rate

Enter 0 if your state has no income tax (e.g. TX, FL)

Future tax rates (at withdrawal)

Expected federal rate ?

Expected state rate

May change if you plan to relocate in retirement

Taxable account assumptions

After-tax return on taxable account ?

Net return after tax drag on dividends and gains

Break-Even Tax Rate (BETR)

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If your future rate exceeds this, converting likely makes sense

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Taxes due today

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Roth value at year —

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Traditional value at year —

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What this means for you

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Not sure how this fits into your overall retirement plan? That's exactly the conversation we have with clients.

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This calculator estimates the Break-Even Tax Rate (BETR) for a Roth conversion. Results are illustrative and based solely on the inputs provided. No contributions, distributions, or RMDs are modeled. State tax treatment of Roth conversions varies — consult a tax advisor for your specific situation. This is not investment or tax advice.