The Roth IRA, introduced in 1997, allows for contributions to be made on an after-tax basis and all gains (or growth) to be distributed completely tax-free. Since then, people with incomes under $100,000 have had the option to convert all or a portion of their existing Traditional IRAs to Roth IRAs. Beginning in 2008, participants with funds in eligible employer sponsored plans can also roll those funds directly over to a Roth IRA in a qualified rollover if their income did not exceed the $100,000 threshold. Starting in 2010, all IRA owners and participants in eligible employer sponsored plans, regardless of income level, are eligible to convert their Traditional IRA and pre-tax funds in an employer-sponsored plan [401(a)/(k), 403(b) and governmental 457(b)] to a Roth IRA. Is this a good option for you? A conversion has both advantages and disadvantages that should be carefully considered before you make a decision. This calculator compares two alternatives with equal out of pocket costs to estimate the change in total net-worth, at retirement, if you convert your Traditional IRA into a Roth IRA.
 

See below for important disclosure.

Information and interactive calculators are made available to you as educational tools for your independent use. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. Actual results will vary. This information is not intended as investment advice, a recommendation, or solicitation of an offer to sell or buy any security, product, investment or strategy. The results may be used as a resource in making investment decisions but should not be relied on primarily or comprehensively as your financial plan. Please consult with your financial professional regarding your situation. For legal, accounting or tax advice, consult the appropriate professional.

RO: 2806263 (04/2023)