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Roth IRA Conversion Tax Impact Calculator

Implementation Specifications

This calculator is planned and documented. The formulas and guidance below are ready for implementation.

Required Inputs

  • Traditional IRA balance to convert
  • Current income
  • Current tax bracket
  • Expected retirement tax bracket
  • Years until retirement
  • Expected annual return

Formulas & Calculations

Conversion tax now = Conversion amount × Current bracket
Future value if not converted = Conversion amount × (1 + Return)^years
Future tax on traditional withdrawal = Future value × Retirement bracket
Roth future value (tax-free) = (Conversion amount - Conversion tax) × (1 + Return)^years
Net benefit = Roth future value - (Traditional future value - Future tax)

Status: Specification complete, implementation pending

To implement: Create app/components/calculators/roth-ira-conversion-tax-impact-calculator.tsx and register in app/lib/calculator-registry.ts