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Examples of Roth Rollover |
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Examples of Roth Rollover |
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Examples of Roth Rollover
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Examples of Roth Rollover |
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Examples of Roth Rollover |
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This analysis compares rolling an IRA of $50,000 to a Roth account over 5 years.
Prompt |
Value |
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Illustration Type |
Rollover from a... |
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Date of Birth |
1/1/1960 |
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Retirement Age |
65 |
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Month to Retire |
June |
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Primary Act Type |
Traditional IRA |
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Rate of Return |
6% |
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Tax Bracket |
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Before Retirement |
28% |
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After Retirement |
28% |
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Rollover Values |
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Current IRA Account Value |
$50,000 |
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Rollover Method |
Percent of Account |
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Amount to Rollover |
25% |
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# of Years to Rollover |
5 |
The after tax values of both accounts will be identical. (As the results are date sensitive, they are not displayed here.)
In the same example as above, increase the before retirement tax bracket to 35%.
The pre-tax qualified plan will have a higher after tax value in retirement than the Roth account.
In the same example as above, return the before retirement tax bracket to 28%, and change the after retirement bracket to 35%.
The Roth account will have a higher after tax value in retirement than the pre-tax qualified plan.