Roth Conversion Calculator

[Art Webb]

I'm interested in obtaining a Roth Conversion Calculator that would analyze pros and cons of a Roth conversion vs keeping IRA. Calculator should provide amount of conversion tax payments needed, one or multiple conversion options, Medicare IRMAA impacts, various investment percentages of Roth growth vs IRA growth, and RMD amounts with associated tax bill.

I’ve seen numerous CFPs hawk their services for $5,000 or more.  I understand the potential value to convert but would like to use an outstanding calculator to actually show the value of different conversion options and investment percentages.  Looking for some excellent calculator recommendations ….free or purchase.  Thanks for all recommendations.   Art

[Daniel Murphy]

Unfortunately, I don't believe such a calculator exists.  There are too many variables to account for with everyone's unique taxes.  

A very simplistic calculation could be, the amount of conversion * 22% would give you your rough taxes. I say this because, (I've been doing partial Roth conversions for years with clients), all of my Roth conversions have been to fill up the 22% tax bracket. I have only had one case where we filled up the 24% bracket and that was a very unique situation.  

I'm not sure what you mean by "one more multiple conversion options".  I either convert when the market is down, or at the end of the year for the most part... 

The investment % of growth of IRA vs Roth is a bit broad. If you use the same investment pre and post-roth conversion, the growth would be the same. However, if you're managing your investments with a bit more tact, you will put your bonds in the IRA and your higher growth investments in the Roth which would give you differing growth rates. But these are "EXPECTED" returns, so they are just estimates.

RMD amounts can be calculated post-conversion, but they are estimates too.  

All of this is nuanced & complicated which is why I don't believe any single calculator exists.  I also don't believe many or any CFP's are charging $5,000 for Roth conversion calculations. 

[Josh St Laurent]

Quote from @Art Webb:

I'm interested in obtaining a Roth Conversion Calculator that would analyze pros and cons of a Roth conversion vs keeping IRA. Calculator should provide amount of conversion tax payments needed, one or multiple conversion options, Medicare IRMAA impacts, various investment percentages of Roth growth vs IRA growth, and RMD amounts with associated tax bill.

I’ve seen numerous CFPs hawk their services for $5,000 or more.  I understand the potential value to convert but would like to use an outstanding calculator to actually show the value of different conversion options and investment percentages.  Looking for some excellent calculator recommendations ….free or purchase.  Thanks for all recommendations.   Art

 Hey Art, CFP here, I'll second what @Daniel Murphy said about there not being a calculator to do exactly what you're looking to do.  The calculation itself is relatively straight forward and just like Daniel explained you're typically "Filling up" your tax bracket with a conversion.  You can do a lot of the projections you're talking about in financial planning software, like estimating RMDs.  I use RightCapital for my software and could get you a link to go in and run some numbers yourself if you think it would be helpful for you.  No charge, just shoot me a DM if you want to get in there and crunch some numbers.