Should I Convert to a Roth IRA?

If your income is $100,000 or less and you are single or married, filing jointly, you may be eligible to convert your traditional IRAs to a Roth IRA in order to take advantage of federally tax-free earnings in the future.

You will generally pay ordinary federal income tax (but not the 10% penalty tax) on the taxable amount that is converted. Your tax-free potential is maximized if you pay the taxes from your current income or personal savings, not your IRA.
Assumptions
Current age
Age when income should start
Number of years to receive income
Before-tax hypothetical rate of return on savings: (% - accumulation phase)
Historic Rates of Return
Before-tax hypothetical rate of return on savings: (% - distribution phase)
Historic Rates of Return
Income tax bracket: (% - accumulation phase)
Tax Table
Income tax bracket: (% - distribution phase)
Tax Table
Current IRA balance
Non-Deductible portion of IRA balance
How will you pay the conversion tax?1) Pay taxes from non-IRA assets
2) Pay taxes from proceeds of Roth conversion
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This information may help you analyze your financial planning needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. This service shall not infer that company assumes any fiduciary duties. In addition, such service should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.