Roth IRA Conversion Calculator
This Roth IRA calculator compares the tax consequences of keeping your Traditional IRA vs. converting to a Roth IRA.
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Should You Keep Your Traditional IRA Or Convert To A Roth IRA?
IRAs are popular retirement savings plans – but should you choose a Roth or Traditional?
This Roth vs Traditional IRA calculator will help you compare the tax and investment consequences of each option so that you can determine the best account for you.
Similarly, this Roth IRA calculator will highlight the consequences of converting from a Traditional IRA to a Roth IRA so that you can see the financial consequences and make an appropriate decision.
It simplifies all the variables and complicated math into easy-to-understand results.
An IRA is an individual retirement plan – also called an individual retirement arrangement – that provides tax advantages for U.S. taxpayers saving for retirement.
IRAs are provided by many financial institutions, including some employers. Contributions are sometimes based on and limited by employment compensation, which includes wages, salaries, fees, tips, bonuses, commissions, taxable alimony, and separate maintenance payments.
Types of IRA’s include both Traditional and Roth IRAs. Each has eligibility restrictions based on your income or employment status. IRAs have contribution limits and penalties if you take out money before the pre-determined retirement age. Find the best IRA account type for you by using the Roth IRA conversion calculator above.
Differences Between Roth And Traditional IRAs
Money in Traditional and Roth IRAs grow tax-free – while the money is in the account. The type of individual retirement account you choose has a significant impact on you and your family’s long-term savings so it is important to understand the differences between Traditional and Roth IRAs:
Want to make a quick comparison between the two IRA plans? Plug in your own numbers for the two types of accounts using our Roth IRA calculator. You’ll be able to compare a Traditional IRA with a Roth IRA and view results at the time of conversion, from now until retirement age, and during retirement – at every point during the investment process.
Armed with the knowledge of how a conversion will help or hurt your investment results, you’ll be well prepared to make the most appropriate decision to build more wealth.
A few minutes of research can radically change your retirement planning strategy for the better. I hope this calculator helps you.
Roth IRA Calculator Terms & Definitions:
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