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?

 
   
   
First State Investment Services, retirement, planning, investments
1403 13th Ave. • Mendota, IL • 61342
Phone: 815-539-3437 • Fax: 815-539-3477
• chris.eller@investmentcenters.com

Investment Centers of America, Inc. (ICA) member FINRA, SIPC and a Registered Investment Advisor is not affiliated with First State Bank or First State Investment Services. Securities, advisory services and insurances products offered through ICA and affiliated agencies are *not insured by FDIC or any other Federal Government agency *not a deposit or other obligation of, or guaranteed by any bank or their affiliates *subject to risks including the possible loss of principal amount invested. ICA does not provide tax or legal advice.


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