The Roth series · A two-minute check · By Rich LoPresti, CFP®

Is a Roth conversion worth a look for you?

Eight questions, two minutes, no email and nothing saved. You'll get an honest read on whether this is worth your time, and which two articles to read next.

What this is. A screen, not a recommendation. It sorts the people for whom a conversion is usually worth a close look from the people for whom it usually isn't, based on the handful of things that drive the answer: where you are in your career, how much of your savings has never been taxed, what your income does after the paychecks stop, where the tax money would come from, Medicare timing, and who inherits. Whether to convert, and how much, takes real numbers. This tells you whether it's worth gathering them.

1. Where are you in your working life?

The best conversion years are usually the ones right after the paychecks stop.

Still working, more than five years from retiring Within about five years of retiring Retired, not yet taking Social Security Taking Social Security, or past the age for required withdrawals

2. Roughly how much of your retirement savings has never been taxed?

Traditional 401(k)s, 403(b)s and IRAs. Not Roth, not your bank or brokerage accounts.

Less than a quarter About a quarter to a half Half to three-quarters More than three-quarters

3. In the first few years after you stop working, what do you expect your taxable income to be, compared with today?

Before Social Security and required withdrawals start.

Much lower About the same (a pension, consulting, rental income) Higher I don't know

4. If you converted, where would the money to pay the tax come from?

This decides how much you can convert before it decides anything else.

Cash or taxable savings outside my retirement accounts I'd have to take it out of the IRA itself I haven't thought about it

5. How old is the older of you?

Medicare premiums are based on your income from two years earlier.

Under 59½ 59½ to 62 63 or 64 65 or older

6. Who do you expect to inherit most of your retirement accounts?

A charity pays no income tax on an IRA. Children usually have ten years to empty one.

A spouse, then children or grandchildren Mostly charity I haven't decided

7. Do you already have a Roth IRA?

The five-tax-year clock starts with the tax year of your first contribution or conversion to any Roth IRA.

Yes, first funded for a tax year at least five years ago Yes, first funded for a tax year within the last five years No

8. Do you live in Connecticut?

Connecticut phases out qualifying retirement-income exemptions between $100,000 and $150,000 of federal AGI for joint filers, and $75,000 and $100,000 for single filers.

Yes No

0 of 8 answered

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Talk with Rich → Map your conversion window → Start over

This read is based only on your eight answers. It is general education, not a recommendation to convert or not to convert, and it is not a tax projection. A conversion is taxable in the year it happens and cannot be undone.

What this check does not do.

Worth being explicit, because a tool like this can imply more than it should.

It does not tell you how much to convert, or whether to. That takes your actual income, accounts, state, health and goals, and usually a multi-year tax projection.
It does not calculate any tax, or any tax saved. Nothing here is a projection.
It does not know your plan's rules, your after-tax IRA basis, or whether you qualify for a Roth IRA contribution.
It stores nothing. Your answers stay on this page and disappear when you leave it.

Start here

Why the Roth is the account that lets you steer your income in retirement.

The steering wheel →

The timing

Why the years right after the paychecks stop are often the cheapest time to convert.

Read the article →

The objections

Paying the tax, the five-year rule, and "my accountant says don't."

Read the article →

Educational tool written by Rich LoPresti, CFP®. It is not individualized investment, tax or legal advice and not a recommendation. Roth conversions are taxable in the year they occur and cannot be recharacterized. Qualified Roth distributions require a five-year holding period and age 59½, death or disability. Consult a qualified tax advisor. Retirement Approaching provides retirement-planning education. Advisory services are offered through Milestone Asset Management Group, LLC, an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. No investment result or tax savings is guaranteed.