Roth IRA Conversion Calculator: Should You Convert?
An IRA conversion is when you turn a traditional IRA into a Roth IRA. Our tool helps you to determine whether that’s a good decision by showing which option will provide the most monthly retirement income. When you convert to a Roth IRA, you owe income taxes for that year on the amount you are converting—however, the long term benefits may outweigh the initial tax bill. Enter details about your current IRA and future contributions to see if you should keep your retirement savings in a traditional IRA or convert them to a Roth IRA.
How to Convert a Traditional IRA to a Roth IRA
If you already have a traditional IRA and want to convert it to a Roth IRA, follow these steps.
- Pay taxes on your traditional IRA contributions and gains. Contributions to Roth IRAs are taxed (unlike traditional IRAs), so you will need to give the tax deduction you took on your traditional IRA contributions back. Traditional IRA contributions will be added to your taxable income when you file your tax return.
- Convert the account. Your IRA administrator will walk you through this process, and the conversion will be made as an indirect rollover, direct rollover, or same trustee transfer depending on the financial institution(s) holding your IRAs.
Talk to a Fifth Third Advisor to see if you should convert your IRA.
Next Steps
Fifth Third can help you set up an IRA and start planning for retirement. Learn more about traditional IRAs, Roth IRAs, and IRA rollover. For more help, visit a branch or find an advisor.
Additional Resources
Managing Your IRA Account
Your IRA isn’t just a vehicle for tax-deferred retirement savings: it can be an important and significant portion of your wealth plan.
Inheriting an IRA
After inheriting an IRA, you may have questions about IRS rules regarding making withdrawals. Age, IRA type and your relationship to the IRA owner influence distribution rules.
