Roth conversion

Roth Conversion at Age 60 — Worth the Tax Bill?

Pay tax now at your known rate, or later at an unknown rate. The break-even is usually 10–15 years.

The short answer

Converting a $500K Traditional IRA to Roth at age 60 in the 24% bracket costs about $120K in federal tax today. The Roth wins if your future tax rate stays above 24%, you live past age 75, and you do not need the IRA money before age 80. For most retirees, partial conversions over 5–10 years beat one big lump.

Run the math yourself

These calculators give you the same numbers we used above — with your own inputs.

401(k) Contribution CalculatorProject the IRA balance you would convert.Federal Income Tax CalculatorSee the tax cost of the conversion.Compound Interest CalculatorModel the Roth’s tax-free growth.

Bottom line

Roth conversions are about tax-rate arbitrage. Convert in years when your taxable income is LOW (gap between retirement and Social Security at 70). Never convert more than fills the current bracket. Use the calculator to find your break-even age.

Disclaimer. This is educational, not personalized financial advice. Numbers depend on your specific tax bracket, state, and goals. Verify with the IRS, SSA, or a CPA before acting. See our Financial Disclaimer.