Most of you know that 2010 presents a tremendous opportunity for baby boomers with higher incomes to open a Roth IRA and/or to convert a conventional IRA to a Roth. The reason is that the current income limitations on Roth contributions and conversions will be lifted.
The remaining question is whether executing a Roth IRA conversion is the right move for you. That’s where a conversion calculator can help. Here are some online Roth conversion calculators that I have learned about:
RothRetirement.com was one of the first to publish a complete website about Roth conversions, including a conversion analysis calculator. The output from the calculator can be confusing, which may be intentional.
Fidelity Investments has introduced its version of a conversion evaluator but you will have to sign up to use it.
Dinkytown is well-known for offering a multitude of different financial calculators, including a very simple Roth conversion calculator with an easy to understand graphical output.
SmartMoney Magazine has an online site including an electronic worksheet for Roth IRA conversions. I like that the output includes a definite “yes” or “no” recommendation.
Vanguard Investments also has a conversion calculator but it seems not to know about the rule change for 2010.
The TIAA-CREF Roth IRA conversion calculator is unremarkable and does not appear as comprehensive as some of the others.
The Bank of America conversion calculator is the most interactive because it uses sliders for input with the results instantly displayed on the same page.
Overall, of the online Roth IRA conversion calculators that I have tried, I like the RothRetirement.com and SmartMoney versions the best.
What are your plans for a IRA conversion in 2010?