Roth IRA Conversion  
When Congress created the Roth IRA, millions of Americans who already had traditional IRAs faced a new decision: “Should I convert to a Roth IRA?” Traditional IRAs feature deductible contributions, and withdrawals are taxed as income. Roth IRA contributions, on the other hand, are not tax deductible, although qualified withdrawals of both contributions and earnings from a Roth IRA are free of federal income tax. One issue to consider is that if you convert your traditional IRA to a Roth IRA, you will owe current federal income tax on the amount you convert. This calculator is designed to help you determine whether you should consider converting to a Roth IRA.
     

1. What is your current age?

2. What is the current balance of your IRA?

$

3. What pre-tax return do you expect on your IRA investments (0 to 10 percent)?

%

4. What marginal tax bracket do you expect to be in during your working years?

5. At what age do you expect to begin withdrawing funds from your IRA? (Enter a number between 60 and 70, but at least five years from your current age.)

6. What pre-tax return do you expect on your investments once withdrawals begin (0 to 10 percent)?

%

7. What marginal tax bracket do you expect to be in during your retirement years?

 
   
   
Headway Financial Group LLC
4400 S. Lindbergh Blvd. Suite 6 • St. Louis, MO • 63127
Phone: 314-843-2440 • Fax: 314-843-2404
• jack@headwayfinancial.com lori@headwayfinancial.com bmanson@sagepointadvisor.com

*Securities and investment advisory services are offered through SagePoint Financial, Inc., member FINRA and SIPC and a registered investment advisor. All other services, including certain insurance products and divorce planning, are offered through Headway Financial Group, LLC and JMC Consultants, LLC, which are not affiliated with SagePoint Financial or registered as a broker-dealer or investment advisor. This communication is strictly intended for individuals residing in the states of AZ, CA, FL, IL, KY, MO. No offers may be made or accepted from any resident outside the specific state(s) referenced. 
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