Should you convert your Traditional IRA to a Roth? Calculate the tax cost, breakeven age, IRMAA impact, and see year-by-year projections over 10, 20, and 30 years.
Open a Roth IRA and start converting with one of these top-rated brokerages. Most offer $0 conversion fees.
A Roth conversion moves money from a Traditional IRA (pre-tax) to a Roth IRA (after-tax). You pay income taxes on the converted amount in the year of conversion, but all future growth and qualified withdrawals from the Roth are completely tax-free. There is no income limit or dollar cap on conversions.
Roth conversions are most beneficial when: (1) your current tax rate is lower than your expected retirement rate, (2) you have a long time horizon for tax-free growth, (3) you want to reduce future Required Minimum Distributions (RMDs), (4) you want to leave tax-free money to heirs, or (5) you have a low-income year (sabbatical, early retirement, gap year).
SECURE 2.0 Act requires that starting in 2026, employees aged 50+ who earned over $145,000 in FICA wages the prior year must make catch-up contributions to a designated Roth account rather than pre-tax. The standard catch-up limit is $7,500, with a super catch-up of $11,250 for those aged 60-63. This applies to 401(k), 403(b), and 457(b) plans.
Medicare uses your Modified Adjusted Gross Income (MAGI) from two years prior to determine IRMAA surcharges. A large Roth conversion increases your MAGI that year, potentially triggering higher Medicare Part B and Part D premiums two years later. For 2026, IRMAA thresholds start at $103,000 (single) and $206,000 (married filing jointly). Surcharges can range from $800 to over $4,000 per person per year.
The breakeven age is when the after-tax value of the Roth account equals what you would have had in the Traditional IRA after taxes on withdrawal. This typically ranges from 7 to 15+ years. Factors include: current vs. retirement tax rates, investment growth rate, state taxes, and whether you pay conversion taxes from outside funds. Living beyond your breakeven age means the conversion was financially beneficial.
No. Since 2018 (Tax Cuts and Jobs Act), Roth conversions are irrevocable. You cannot recharacterize a conversion back to a Traditional IRA. This makes it important to carefully calculate the tax impact before converting.
Spreading conversions over multiple years is usually optimal. Converting everything in one year can push you into the highest tax brackets and trigger IRMAA surcharges. A common strategy is to convert just enough each year to "fill up" your current tax bracket without spilling into the next one. Use the optimal conversion amount shown above to find your ideal annual conversion.
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| TurboTax | From $69 | Complex returns | Start Filing → |
| H&R Block | From $55 | In-person support | File Now → |
| TaxAct | From $35 | Budget option | Get Started → |
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Download a detailed PDF with your tax breakdown, deduction checklist, and strategies to save $500-$5,000 on next year's taxes.
Studies show that Americans overpay an average of $1,200 per year in taxes simply because they miss deductions and credits they qualify for. The right tax strategy can save you $2,000 to $10,000 annually, depending on your income, filing status, and life situation.
Not adjusting W-4 withholding after marriage, a new child, or a raise — resulting in a surprise tax bill or an oversized refund (which is an interest-free loan to the IRS).
Choosing the standard deduction without comparing to itemized deductions. Homeowners in high-tax states often miss thousands in savings with the new $40,000 SALT cap.
Missing refundable credits like the Earned Income Tax Credit (EITC). About 20% of eligible taxpayers fail to claim EITC, leaving up to $7,830 on the table.
Tax brackets are marginal. A single filer earning $60,000 pays an effective rate of about 14% — not the 22% bracket rate. Here is how it breaks down:
Average federal tax refund for 2025 filing season. Many taxpayers could keep this money year-round by adjusting their W-4 withholding.
of taxpayers take the standard deduction. With the 2026 increase to $16,100 (single) and $32,200 (married), even more will benefit.
of eligible taxpayers fail to claim the Earned Income Tax Credit, leaving up to $7,830 in refundable credits unclaimed each year.
New 2026 SALT deduction cap under OBBBA, up from $10,000. A major benefit for homeowners in high-tax states like CA, NY, and NJ.
Tax calculations are estimates for educational purposes only. This is not tax advice. Tax laws change frequently. Consult a qualified tax professional for your specific situation.
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