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?

 
   
   
Michael B. Shumway Financial Advisor West Des Moines, Iowa
6701 Westown Parkway, Suite 200 • West Des Moines, IA • 50266
Phone: 515-246-4963 • Fax: 515-246-4076
• shumway.mike@principal.com

Michael B. Shumway, Senior Financial Services Representative, Financial Advisor is licensed in CT, GA, IA, IL, MN NE, and TX  to offer life insurance (including variable life), annuities (including variable annuities), and securities registered in FL, GA, IA, IL, KS, MO, MN, NC, NE, and TX for mutual funds. This site is not a solicitation of interest in any of these products in any other state. IMPORTANT CONSUMER INFORMATION: Michael B. Shumway may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if he is excluded or exempted from the state's registration requirements. Follow-up, individualized responses to consumers in a particular state by Michael B. Shumway that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's requirements, or pursuant to an applicable state exemption or exclusion. For information concerning the licensure status or disciplinary history of a broker-dealer, investment advisor, BD agent or IA representative or any financial institution he represents, contact your state securities law administrator.  Principal National Life Insurance Company (except NY), Principal Life Insurance Company  Des Moines, IA 50392. Principal Life maintains certificates of authority to transact insurance in all 50 states. Its NAIC identification number is 61271.

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