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New Feature: 2023 Roth Conversion Calculator
New Feature: 2023 Roth Conversion Calculator

This article details how to use the current year Roth Conversion Widget.

Nancy Gates avatar
Written by Nancy Gates
Updated over a week ago

The 2023 Roth Conversion Calculator is a stand-alone widget designed to help you make informed decisions around Roth conversions in 2023.

Use the tool to compare estimated taxes when you do nothing, convert up to a specific threshold, or convert a custom amount.


How do I access the 2023 Roth Conversion Calculator?

The Roth Conversion Calculator is a stand-alone widget, is not integrated into PlannerPlus. Due to the fact that PlannerPlus is a forward looking financial projection tool, it does not fully capture all of your 2023 income and tax data. This new calculator covers the full calendar year of projected income. Press here to access the calculator:


How do I get started?

When you launch the widget, you'll be asked to enter your age, your income tax filing status and your projected Adjusted Gross Income (AGI) for the year.

Note: the age selected here will be assumed as the same age for your spouse if you've selected "Married Filing Jointly" as your filing status.

Press "Get Started" to launch the interactive widget.


What do the different columns represent?

  • No additional conversions in 2023: acts as a baseline and estimates the tax liability you could owe based on the projected AGI you entered.

  • Convert up to: allows you to see what it would look like if you convert to the TOP of a specific Federal income tax bracket.

  • Convert up to IRMAA: allows you to see what it would look like if you convert to the TOP of a specific IRMAA threshold tier.

  • Note: this column is only shown if you've entered your age as 63 or higher.

  • Convert: allows you to test different Roth conversion amounts of your choosing.

Please reference our Important Tables for 2023 for more information.


What do the different rows represent?

  • Planned Roth Conversions: The total dollar amount you will convert this year

  • Estimated Net Taxable Income: Your estimated total adjusted gross income minus your standard deduction

    • TIP: You can derive your estimated total AGI by taking the number shown in this row and adding back your applicable standard deduction (Single or MFJ)

  • Highest Federal Tax Bracket You May Reach: Your projected top marginal income tax bracket based on the estimations

  • Estimated Federal Effective Tax Rate: Your estimated total federal tax liability as a percentage of your net taxable income

  • Estimated Federal Income Tax Owed: Your estimated total federal tax liability

  • Estimated Federal Income Tax Owed for Planned Roth Conversion: The estimated additional tax liability as a result of the planned Roth conversion

  • Estimated Long Term Capital Gains Rate: Highest long term capital gains rate that may be reached based on the estimations

  • Estimated Percent of SS that may be taxed: Highest percent of Social Security that may be taxed based on the estimations

  • Highest Tier of IRMAA Reached: Your projected top tier for the Medicare income-related monthly adjusted amount (IRMAA)

  • 2025 IRMAA Per Person: Estimated monthly Medicare part B surcharge per person


What are the assumptions?

  • Age entered is the same for a spouse if you select "Married Filing Jointly"

  • Entered age of 63 or higher will open the "Convert up to IRMAA" column

  • Estimated Net Taxable Income is determined by using your projected AGI plus (+) any Planned Roth Conversions minus (-) the following 2023 standard deductions:

    • Single: $13,950

    • Married Filing Joint: $27,700

    • Note: There is NO additional deduction added for ages 65 and up

  • Top of a tax bracket is computed using Estimated Net Taxable Income and the 2023 tax brackets for your last dollar of income

  • Estimated Federal Tax Owed is based on the 2023 Federal Income Tax brackets but does not compute specifics for capital gains or Social Security

    • Since the tool does not distinguish whether your projected AGI income includes sources from capital gains or Social Security benefits, the Estimated Federal Tax Owed will be calculated as if all income is from ordinary income sources

  • IRMAA threshold tiers are based on Modified Adjusted Gross Income, computed in the widget as your projected AGI plus (+) Planned Roth Conversions

    • IRMAA uses a two year look-back feature to determine if you'll pay a surcharge in the current year. The most current information available is using your 2021 tax return income applied to 2023 IRMAA thresholds to determine if you pay increased Medicare premiums in 2023. This Roth Conversion Widget is using the 2023 thresholds with 2023 estimated income to determine if you pay increased Medicare premiums in 2025.

      • IRMAA applies to Part B and Part D premiums. This Roth Conversion Widget shows the projected surcharge for Part B only.

      • Please reference our IRMAA article for more information


Can you show me a full example? * (2022 Based)

Here's an example using age 63, Married Filing Joint tax filing status and $100,000 projected AGI before any Roth conversions.

No additional conversions: baseline information

  • We see that with no additional conversions, the projected highest Federal tax bracket I may reach is 12% and I'm not projected to trigger IRMAA in 2024 because my 2022 AGI is below the Baseline threshold

Convert up to: clicked the drop down arrow to select up to the 22% Tax Bracket

  • Converting up to the 22% bracket, my additional Roth conversion for the year is $104,050, the projected highest Federal tax bracket I may reach is 22% and I'm projected to trigger the first IRMAA surcharge tier in 2024 because my 2022 AGI is above the Baseline threshold

Covert up to IRMAA: clicked the drop down arrow to select up to the IRMAA Baseline

  • Converting up to the IRMAA Baseline, my additional Roth conversion for the year is $82,000, the projected highest Federal tax bracket I may reach is 22% and I'm not projected to trigger IRMAA in 2024 because my 2022 AGI is below the Baseline threshold

Convert: manually entered number

  • Converting a manual amount, my additional Roth conversion for the year is $150,000, the projected highest Federal tax bracket I may reach is 24% and I'm projected to trigger the second IRMAA surcharge tier in 2024 because my 2022 AGI is above the Baseline and tier one thresholds


Disclaimer: This tool is for informational and educational purposes only and uses estimations. It should not be construed as professional financial advice. Consult your tax advisor or a financial professional for advice regarding your specific situation before taking action.


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