Roth Conversion Calculator
See exactly how much tax you'll owe on a Roth conversion. Fill your bracket, avoid IRMAA, and maximize tax-free growth.
Free. No signup required.
Roth Conversion Calculator
2026 OBBBA tax brackets — bracket-filling optimizer
Wages, pensions, SS, dividends, etc. (before standard deduction of $16,100)
You could convert up to $26,500 and stay in the 12% bracket.
Your 2026 Tax Bracket Map
Tax on Conversion
$3,950
13.2% effective
Marginal Rate
22%
Up from 12%
Bracket Room Left
$26,500
in 12% bracket
FUTURE VALUE IN 15 YEARS
Keep in Traditional IRA
$72,838
after tax at withdrawal
Convert to Roth
$82,771
tax-free forever
Roth advantage: +$9,933 more after tax
FIRE Opportunity
With low other income, this is a prime Roth conversion window. Fill up the 12% bracket ($26,500 remaining) before income rises from SS or RMDs.
Important Considerations
- • Tax brackets are 2026 rates under OBBBA (permanent, no sunset)
- • Pay taxes from outside the IRA to maximize Roth growth
- • Each conversion has its own 5-year rule (under 59½)
- • Pro-rata rule applies if you have both pre-tax and after-tax IRA funds
- • Conversions may affect ACA subsidies (MAGI-based) before age 65
- • Consult a tax professional for your specific situation
2026 Federal Tax Brackets (OBBBA)
The One Big Beautiful Bill Act made TCJA rates permanent. These brackets apply to taxable income (after the standard deduction).
Single — Deduction: $16,100
| Rate | Taxable Income | Width |
|---|---|---|
| 10% | $0 – $12,400 | $12,400 |
| 12% | $12,401 – $50,400 | $38,000 |
| 22% | $50,401 – $105,700 | $55,300 |
| 24% | $105,701 – $201,775 | $96,075 |
| 32% | $201,776 – $256,225 | $54,450 |
| 35% | $256,226 – $640,600 | $384,375 |
| 37% | Over $640,600 | — |
Married Filing Jointly — Deduction: $32,200
| Rate | Taxable Income | Width |
|---|---|---|
| 10% | $0 – $24,800 | $24,800 |
| 12% | $24,801 – $100,800 | $76,000 |
| 22% | $100,801 – $211,400 | $110,600 |
| 24% | $211,401 – $403,550 | $192,150 |
| 32% | $403,551 – $512,450 | $108,900 |
| 35% | $512,451 – $768,700 | $256,250 |
| 37% | Over $768,700 | — |
BRACKET-FILLING STRATEGY
Convert enough to fill your current bracket, not spill into the next one. A single early retiree with $0 other income has $66,500 of space at 0-12% ($16,100 deduction + $50,400 in the 10-12% brackets).
The Two 5-Year Rules
Roth IRAs have two distinct 5-year holding periods. Confusing them is one of the most common mistakes in Roth conversion planning.
Rule 1: Earnings
To withdraw earnings tax-free, you must be 59½+ and have held any Roth IRA for 5+ tax years. Once satisfied for one Roth, it's satisfied for all.
Clock starts January 1 of the year you opened or converted to your first Roth IRA.
Rule 2: Conversion Penalty
Each conversion has its own 5-year clock. If under 59½, withdrawing converted principal within 5 years triggers a 10% penalty. After 59½, this rule no longer applies.
This is the key rule for Roth conversion ladders — you need to wait 5 years per tranche.
The Roth Conversion Ladder (FIRE Strategy)
The Roth conversion ladder is the go-to strategy for accessing retirement funds before 59½ without penalties. Here's how it works:
Retire & live on bridge funds
Use taxable brokerage, savings, or cash for years 1-5 of early retirement.
Convert each year
Move a year's worth of expenses from your Traditional IRA to a Roth IRA. Pay tax at your low early-retirement rate.
Wait 5 years per conversion
Each converted amount has its own 5-year clock before penalty-free withdrawal.
Withdraw converted principal
After 5 years, the converted principal is accessible penalty-free — even before 59½.
Repeat annually
Create a rolling pipeline of tax-free, penalty-free income for the rest of early retirement.
ACA Subsidy Warning
For early retirees under 65 on ACA health insurance, Roth conversions increase your Modified Adjusted Gross Income (MAGI). If MAGI exceeds 400% of the Federal Poverty Level, you could lose $10,000-$15,000/year in premium subsidies. Consider capping conversions to preserve your healthcare savings.
Hidden Costs to Watch
Medicare IRMAA
Medicare uses a 2-year lookback. A large 2026 conversion could trigger $1,000-$5,000+/year in Part B and Part D surcharges starting in 2028. IRMAA is a "cliff" tax — exceeding $109k (single) or $218k (MFJ) by just $1 triggers the full surcharge.
Our calculator warns you when conversions approach IRMAA thresholds.
Pro-Rata Rule
The IRS treats all non-Roth IRAs as one pool. If you have both pre-tax and after-tax (nondeductible) IRA money, you can't cherry-pick which to convert. The taxable portion is proportional to your total pre-tax balance.
Workaround: Roll pre-tax IRA funds into an employer 401(k) first ("reverse rollover").
Frequently Asked Questions
What is a Roth conversion?
A Roth conversion moves money from a pre-tax retirement account (Traditional IRA, 401(k), SEP IRA) into a Roth IRA. You pay income tax on the converted amount now, but all future growth and withdrawals are tax-free. This is especially valuable during years when your income — and therefore your tax rate — is low.
What are the 2026 tax brackets under OBBBA?
The One Big Beautiful Bill Act (OBBBA) of 2025 made the TCJA tax rates permanent. For 2026, the seven brackets are: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Single filers hit the 22% bracket at $50,401 and 24% at $105,701. Married filing jointly hits 22% at $100,801 and 24% at $211,401. Standard deductions are $16,100 (single) and $32,200 (MFJ).
What is bracket filling and why does it matter?
Bracket filling means converting just enough to "fill up" your current tax bracket without spilling into the next one. For example, if you're single with $30,000 in taxable income, you have $20,400 of room in the 12% bracket. Converting that amount costs just 12% in tax instead of paying 22%+ later. This strategy is especially powerful for early retirees with low current income.
What is the Roth conversion ladder for early retirement?
A Roth conversion ladder is a FIRE strategy for accessing retirement funds before age 59½ without penalties. You convert a portion of your Traditional IRA to Roth each year. After 5 years, the converted principal can be withdrawn penalty-free. By staggering conversions annually, you create a "pipeline" of accessible funds. You need bridge income (savings, taxable account) to cover the first 5 years.
How does a Roth conversion affect Medicare IRMAA?
Medicare uses a 2-year lookback for Income-Related Monthly Adjustment Amounts (IRMAA). A 2026 conversion affects your 2028 premiums. If your MAGI exceeds $109,000 (single) or $218,000 (MFJ), you'll pay $1,000-$5,000+ per year in surcharges on Medicare Parts B and D. This is a "cliff" tax — exceeding the threshold by $1 triggers the full surcharge.
What is the pro-rata rule for Roth conversions?
The IRS treats all your non-Roth IRAs as one pool when calculating taxes on a conversion. If you have both pre-tax and after-tax (nondeductible) IRA money, you can't choose to convert only the after-tax portion. The taxable percentage is based on the ratio of pre-tax to total IRA balances. To avoid this, consider rolling pre-tax IRA funds into an employer 401(k) first ("reverse rollover").
What are the two 5-year rules for Roth IRAs?
Rule 1 (Earnings): To withdraw earnings tax-free, you must be 59½+ and have held any Roth IRA for 5+ years. Rule 2 (Conversions): Each conversion has its own 5-year clock. If you're under 59½ and withdraw converted principal within 5 years, you owe a 10% penalty. After 59½, the conversion penalty rule no longer applies.
Should I pay conversion taxes from the IRA or outside funds?
Always pay taxes from outside funds (savings, taxable account) if possible. If you convert $50,000 and withhold 22% ($11,000), only $39,000 goes into the Roth — and the $11,000 withheld is treated as an early distribution if you're under 59½, triggering a 10% penalty. Paying externally puts the full $50,000 into the Roth to grow tax-free.
Complete Your Retirement Tax Strategy
Roth conversions work best when combined with a full withdrawal plan. Use our other tools to optimize your complete strategy.
Not financial advice. This calculator is for educational purposes only and does not constitute financial, tax, or investment advice. Results are estimates based on the inputs you provide and historical data. Consult a qualified financial advisor for personalized guidance. Read our editorial guidelines.