Required Minimum Distribution – Roth 401(k) Transition

Analyze the effects of converting traditional retirement savings to a Roth IRA.

Conversion Details

Traditional 401(k) Balance

Roth 401(k)/IRA Balance

Current Age

Retirement Age

Current Tax Rate

Expected Retirement Tax Rate

Annual Conversion Amount

Expected Annual Return

Traditional at Retirement$289,948

Roth at Retirement$675,713

Conversion Taxes Paid$72,000

Traditional After-Tax$226,160

Total After-Tax Value$901,872

Tax Savings from Conversion$118,307