MBR Financial, Inc.
2000 West Loop South
Ste. 1510
Houston, TX 77027
832-667-8787
281-974-2108
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Advanced Roth IRA Conversion Calculator
Advanced Roth IRA Conversion Calculator

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 in 2018, and (2) No traditional-to-Roth conversion in 2018. 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.

Part One: General Information
Age in 2018
End projection for IRA owner at age
Current traditional IRA balance $
Nontaxable amount allocated to IRA* $
Percent of IRA to be converted %
Part Two (Optional): Show distributions to beneficiaries?

Select "Yes" if you want to project amounts for beneficiaries

Spouse beneficiary -- % of IRA proceeds at death** % Age in 2018
Nonspouse beneficiary(ies)
Beneficiary 1-- % of IRA proceeds at death % Age in 2018
Beneficiary 2-- % of IRA proceeds at death % Age in 2018

* If you have multiple traditional IRAs, you must pro-rate your nontaxable balance among them. The IRS provides a worksheet in Publication 590-B.

** Assumes rollover to own IRA.

Conversion taxes are paid from other assets.

IRA owner turns 70½ in the same year he or she reaches age 70.

First lifetime RMD paid in the year traditional IRA owner reaches age 70½; Lifetime RMD calculation does not account for special rule that applies when spouse is more than 10 years younger than IRA owner. Lifetime RMDs are not required for Roth IRA owners.

Death occurs on last day of the year; conversion occurs at beginning of year; and all taxes are paid at end of year incurred.

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. If these taxes had been taken into account, the results shown may have been lower.

RMDs are deposited into a side fund and grow at the specified annual rate of return. 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, RMDs from traditional IRA start in year spouse reaches age 70½. No lifetime RMDs are required for spouse beneficiary from Roth IRA because spouse becomes Roth IRA owner. RMDs are required for non-spouse beneficiaries of both traditional and Roth IRAs, and these commence in the year after the IRA owner's death.

Does not take into account special rule that says RMDs can be taken over owner's remaining life expectancy if longer than the beneficiary's. Assumes separate accounts established for beneficiaries - each beneficiary's own life expectancy is used for RMDs.

This is a hypothetical example intended for illustration purposes only, and does not represent the performance of any specific investment or portfolio, nor is it an estimate or guarantee of future value. The calculations above assume that earnings are compounded annually, and that distributions from the Roth IRA will be tax free. Investment fees and expenses have not been deducted. If they had been, the results would have been lower. When making an investment decision, investors should consider their personal investment horizons and income tax brackets, both current and anticipated, as these may further impact the results of this comparison.



IMPORTANT DISCLOSURES Broadridge Investor Communication Solutions, Inc. does not provide investment, tax, legal, or retirement advice or recommendations. The information presented here is not specific to any individual's personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable — we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2018.