An educational estimate — not tax or investment advice.
rothcliff.com helps you understand the cliffs a Roth conversion has to navigate. It does not tell you what to do, and it is not a substitute for a qualified professional who knows your full situation.
Not tax advice. Not investment advice.
rothcliff.com provides a general educational estimate only. It is not tax, legal, investment, accounting, or financial advice, and no advisor–client relationship is created by using it. Consult a qualified CPA or a fee-only fiduciary advisor before making a Roth conversion.
What this tool estimates
The calculator models how a Roth conversion interacts with several income thresholds — the next federal tax bracket, Medicare IRMAA tiers, the Net Investment Income Tax (NIIT) threshold, the ACA premium-tax-credit cliff, and Social Security taxability — plus a state-tax line and a multi-year drawdown view. Its goal is to show you the map of the cliffs, so you can decide, not to hand you a decision.
What's estimated vs. exact
- Federal tax is computed from the IRS brackets and standard deduction for the tax year you select. It does not model every credit, deduction, phase-out, AMT, or the many items that make up a real return.
- IRMAA uses the current tier structure and surcharge amounts. Because IRMAA works on a two-year MAGI lookback, a conversion this year affects premiums two years later — the tool shows the timeline, but the tiers themselves inflation-adjust annually and are set by CMS each fall.
- NIIT is applied at the statutory thresholds ($200k Single / $250k MFJ / $125k MFS). A conversion is ordinary income and is not itself subject to NIIT, but it can push your other investment income over the line.
- The ACA cliff is modeled at the currently-applicable threshold. This rule is legislatively volatile — enhanced-subsidy provisions have been enacted and have expired — so treat the ACA output as directional and confirm the current-year rule for your marketplace.
- State tax is a top-marginal estimate and does not capture bracket-specific brackets, age-conditional exemptions, or the special ways some states treat Roth conversions. Twelve states don't tax retirement distributions at all; verify your state with a local CPA.
- The heir comparison relies on assumptions about future tax brackets that are inherently speculative. Treat it as a scenario, not a forecast.
Why the figures are time-sensitive
Tax law in this area moves fast. Federal brackets and the standard deduction inflation-adjust every year; IRMAA tiers are announced by CMS around November for the following year; ACA subsidy rules depend on live legislation; and states change their treatment of retirement income on no fixed schedule. A number that's correct today can be wrong within twelve months. Always check the "last updated" date and confirm against the current authoritative source before acting.
One thing the tool won't do
It won't tell you that converting is a good idea. Roth conversions are a tool, and for people in their highest-earning years they're often the wrong move. The calculator is deliberately neutral: it shows the cliffs and the costs and leaves the decision to you and your advisor.
Where to verify
- Roth conversion and IRA rules — IRS Publication 590-B.
- Medicare IRMAA tiers and surcharges — Medicare.gov / CMS.
- Your state's treatment of retirement distributions — your state department of revenue or a local CPA.
- ACA marketplace subsidy status — your state marketplace or HealthCare.gov.
No affiliation
rothcliff.com is operated by Red Goggles LLC and is an independent calculator. It is not affiliated with, endorsed by, or sponsored by the IRS, CMS, the Social Security Administration, or any financial institution, custodian, or advisor.