Estimated Income Taxes for Converting Traditional IRA to Roth IRA
Enter your amounts in the grey cells. The yellow cells are calculated automatically.
Filing Status (1-Single, 2-Married filing joint) 2
Tax year (2005 to 2012) 2008
Total Social Security benefits $12,000 For filing status 2, enter the total SS benefit for husband and wife.
Short term capital gain $0
Long term capital gain $20,000 Enter a capital loss or loss carryover as a negative number.
Qualifed dividends $20,000 Include NQ dividends with other taxable income.
Tax-exempt interest $0 Tax exempt interest is considered as regular income for SS tax calculation.
Other taxable income $0 Additional taxable income from wages, pensions, dividends, IRAs, etc.
Total of deductions and exemptions $17,500 Enter as a positive number.
Amount of TIRA to Roth conversion this year $40,000 This amount will be included in total taxable income (enter
0 if not converting).
Social Security subject to income tax $10,200
Total estimated income tax $5,243
Marginal tax rate (last $10 of income) 30%
Effective tax rate on entire IRA conversion 13% May be higher than marginal rate due to tax on Social Security benefits.
1. The tax brackets for 2010 and later years are estimated. The tax rates for various types of income for future years are either already
set by Congress or assumed to remain the same as they are now.
2. This program works only for total incomes that do not exceed the 28% tax bracket.
3. The program does not consider AMT or phaseout of deductions and exemptions at higher incomes.
4. State and or local income taxes are not included in this calculcation.