roth ira conversion - Should I convert my ira to roth ira ?

	New --Roth IRA conversion with distributions
	Is converting your Traditional IRA to Roth is a good option for you? A conversion has both advantages and disadvantages that should be carefully considered before you make a decision. Starting in 2010, all IRA owners, regardless of income level, are eligible to convert their traditional IRA to a Roth. The conversion requires payment of income taxes on the amount converted. This is payable with your income tax return for the year of conversion (except for a one-time option in 2010 to spread your tax liability over 2011 and 2012). This calculator takes the tax you need to pay and set it as a side account, during the accumulation period it will grow it as a regular account and then will be used to pay the taxes during the distribution period. The bottom line is the amount you will have in it at the end of all the IRA distributions, if it will be positive amount it means that staying with your current IRA is the best way to be under the program and the entered values assumptions.

	Account information
	Current Age	$
	Age when income should start
	Number of years to receive income
	Amount to convert	$

	Income & investment rate information
	Filing status
	Current estimated taxable income
	Estimated taxable income at retirement
	Rate of return (accumulation phase)	%
	Rate of return (distribution phase)	%
	Avg inflation rate:

	Show Schedule

Summary Results
Conversion Phase	Traditional IRA	Roth IRA
IRA balance to convert	$100,000.00	n/a
Conversion tax (side account*)	$29,654.25	$29,654.25
Paying conversion tax amount	$0.00	($29,654.25)
Adjusteded beginning comparison balance	$129,654.25	$100,000.00

Balance at the end of Accumulation Phase
Accumulated balance	$429,187.07	$429,187.07
Accumulated side account	$127,272.21	$0.00
Total estimated value at retirement	$556,459.28	$429,187.07

Balance at the end of Distribution Phase
Account balance	$0.00	$0.00
Side account balance	$22,036.12	n/a
Total balance	$22,036.12	$0.00

* Due to paying taxes at conversion in order to make a fair comparison we set aside account with initial value
conversion tax amount.

Distribution Schedule

Year	Age at 12/31	IRA distribution	IRA balance	IRA Side acc	Tax paid	Roth distribution	Roth balance
1	65	$14,306.24	$431,476.07	$127,542.81	$4,820.29	$14,306.24	$431,476.07
2	66	$14,878.49	$433,261.49	$127,662.27	$4,982.25	$14,878.49	$433,261.49
3	67	$15,473.62	$434,499.38	$127,619.11	$5,149.65	$15,473.62	$434,499.38
4	68	$16,092.57	$435,143.08	$127,401.19	$5,322.68	$16,092.57	$435,143.08
5	69	$16,736.27	$435,143.08	$126,995.71	$5,501.52	$16,736.27	$435,143.08
6	70	$17,405.72	$434,446.85	$126,389.17	$5,686.38	$17,405.72	$434,446.85
7	71	$18,101.95	$432,998.70	$125,567.30	$5,877.44	$18,101.95	$432,998.70
8	72	$18,826.03	$430,739.57	$124,515.07	$6,074.92	$18,826.03	$430,739.57
9	73	$19,579.07	$427,606.92	$123,216.64	$6,279.04	$19,579.07	$427,606.92
10	74	$20,362.23	$423,534.47	$121,655.29	$6,490.01	$20,362.23	$423,534.47
11	75	$21,176.72	$418,452.06	$119,813.42	$6,708.08	$21,176.72	$418,452.06
12	76	$22,023.79	$412,285.40	$117,672.49	$6,933.47	$22,023.79	$412,285.40
13	77	$22,904.74	$404,955.88	$115,212.96	$7,166.43	$22,904.74	$404,955.88
14	78	$23,820.93	$396,380.34	$112,414.25	$7,407.22	$23,820.93	$396,380.34
15	79	$24,773.77	$386,470.83	$109,254.72	$7,656.11	$24,773.77	$386,470.83
16	80	$25,764.72	$375,134.36	$105,711.55	$7,913.35	$25,764.72	$375,134.36
17	81	$26,795.31	$362,272.61	$101,760.77	$8,179.24	$26,795.31	$362,272.61
18	82	$27,867.12	$347,781.70	$97,377.14	$8,454.06	$27,867.12	$347,781.70
19	83	$28,981.81	$331,551.89	$92,717.61	$8,554.62	$28,981.81	$331,551.89
20	84	$30,141.08	$313,467.24	$87,816.43	$8,609.89	$30,141.08	$313,467.24
21	85	$31,346.72	$293,405.34	$82,659.67	$8,669.41	$31,346.72	$293,405.34
22	86	$32,600.59	$271,236.94	$77,232.66	$8,733.40	$32,600.59	$271,236.94
23	87	$33,904.62	$246,825.61	$71,519.89	$8,802.08	$33,904.62	$246,825.61
24	88	$35,260.80	$220,027.40	$65,505.00	$8,875.68	$35,260.80	$220,027.40
25	89	$36,671.23	$190,690.41	$59,170.74	$8,954.46	$36,671.23	$190,690.41
26	90	$38,138.08	$158,654.43	$52,498.92	$9,038.65	$38,138.08	$158,654.43
27	91	$39,663.61	$123,750.45	$45,470.33	$9,128.54	$39,663.61	$123,750.45
28	92	$41,250.15	$85,800.31	$38,064.76	$9,224.39	$41,250.15	$85,800.31
29	93	$42,900.16	$44,616.16	$30,260.85	$9,326.50	$42,900.16	$44,616.16
30	94	$44,616.16	$0.00	$22,036.12	$9,435.16	$44,616.16	$0.00

Notes: The numbers for a given year reflect after distribution and growth values for that year. The IRA taxes paid due to distribution are coming from the side-account and a positive cash amount in the side-account at the end of the IRA distribution period suggests that staying with your current IRA make more sense under the entered assumptions.