IRA to Roth Conversion Tax Calculator 2026 – Bracket & IRMAA Planning
Estimate taxes on a 2026 IRA→Roth conversion. Model bracket stacking, standard/itemized deduction, and potential IRMAA impacts.
IRA to Roth Conversion Tax Calculator 2026 – Bracket & IRMAA Planning
Introduction
Roth conversions can move pre‑tax money into tax‑free Roth. This guide estimates 2026 taxes on conversions and flags IRMAA/credit impacts.
Inputs
- Expected taxable income and deductions
- Conversion amount
- Filing status and state
Output
- Added tax due from stacking conversion into brackets
- Potential IRMAA and phase‑out considerations
Tips
- Fill lower brackets in low‑income years
- Coordinate with Social Security, capital gains, and credits
- Consider partial conversions over multiple years
Related Tools
- Tax Bracket Calculator 2026: /calculator
- HSA Contribution 2026: /calculator
- Retirement Savings 2026: /calculator/retirement
CTA: Plan Your Conversion
Enter your income and conversion amount to estimate taxes and choose a bracket‑aware strategy.
Conversion Strategy Playbook (Illustrative)
- Bracket Filling: Convert up to the top of a targeted marginal bracket each year to smooth lifetime taxes.
- Social Security Coordination: Conversions can increase provisional income, potentially raising Social Security taxability—sequence carefully.
- Capital Gains and NIIT: Stacking conversions can push capital gains into higher rates or trigger NIIT—monitor thresholds.
- IRMAA: Medicare premiums are based on MAGI with a two‑year lookback; conversions can push you into higher IRMAA brackets—use multi‑year modeling.
Methodology and Assumptions
- Start with projected taxable income and deductions for 2026.
- Add conversion amount; recompute marginal brackets and total tax.
- Compare with and without conversion to isolate added tax.
- Evaluate cliff thresholds (credits, ACA subsidies, IRMAA) if relevant.
- Repeat across multiple years to build a conversion schedule.
Assumptions:
- Verify 2026 bracket thresholds and IRMAA tiers.
- State income taxes vary; include state modeling for high‑tax states.
- This guide focuses on tax mechanics; investment performance and sequence risk remain separate considerations.
Examples (Illustrative Only)
Example A: Early Retiree Pre‑RMDs
- Low ordinary income years before RMDs are ideal for filling lower brackets; model multi‑year conversions.
Example B: Widowed Taxpayer Facing Filing Status Change
- Post‑widowhood filing status can raise effective rates; front‑load conversions while still filing jointly if appropriate.
Example C: High Earner Near IRMAA Thresholds
- Convert only up to the IRMAA tier boundary to avoid large premium jumps; revisit annually.
FAQs
Q: Does a conversion restart the 5‑year clock?
A: Each conversion has its own five‑year aging for penalty‑free access to converted principal before age 59½; qualified distributions in retirement are tax‑free subject to rules.
Q: Can I recharacterize a conversion?
A: Recharacterizations of conversions are no longer allowed; plan carefully before executing.
Q: How do QCDs interact with conversions?
A: Qualified Charitable Distributions from IRAs reduce RMDs and AGI but cannot be made from Roth IRAs; coordinate QCDs with conversion timing.
Action Checklist (Copy/Paste)
- Project base income and deductions
- Choose target bracket and IRMAA tier
- Add conversion amount; compute incremental tax
- Check credits, ACA subsidies, and state taxes for cliffs
- Build a multi‑year conversion plan and revisit annually
Key Takeaways
- Start contributing to retirement accounts as early as possible to benefit from compound growth
- Review your retirement plan annually to stay on track with your goals
- Consider tax-advantaged accounts like 401(k) and IRA to maximize savings
How to Use This Calculator
- Enter your financial details in the fields above
- Adjust parameters to match your specific situation
- Review the calculated results and projections
- Compare different scenarios to find the optimal strategy
Tips for Better Results
- Use realistic estimates based on current market conditions
- Update your calculations regularly as your situation changes
- Consider consulting a financial advisor for complex decisions
- Remember that calculator results are estimates, not guarantees