If you have been pondering whether to convert your traditional IRA to a Roth IRA, it is worth your time and effort to research and compare the pros and cons. In the web, there are an inexhaustible source of information and opinions on Roth conversions. A fascinating website such as Forbes provides relevant data to guide you as to how much you should convert even without a calculator. It takes into account the minimum required distributions but does not compare the value of a Roth and traditional IRAs. Forbes got some assistance from Dr. Gobind Daryanani, author of Roth IRA Book: An Investor’s Guide. You can also view the website of the well known Scottrade. They provide a number of online research tools, interactive retirement calculators and educational resources for different individual retirement accounts.
Many investors are happy with the contribution limits being liberalized with Roth IRA. One hot topic out there is whether or not using Roth IRA calculator tools are helpful. Many experts recommend its usage while others advise not to take them seriously.
There are many free IRA calculator tools in the internet which can show a comparison between a Roth IRA and the regular one. Many financial and retirement planners share opposing views. The rule of thumb when it comes to Roth IRA Calculator is just to take it at its face value.
There are many types of calculator tools available for free on the internet. One is the Roth Ira Decision Tool. This is simple and easy to use. It gives you a tour of some scenarios to check if a conversion is beneficial. Another calculator is the IRA Conversion Analyzer. It eliminates the guessing and leads you to various models with legacy planning, breakeven and other assumptions.
Then, there is the IRA Rollover Calculator which can help you find out what to do with your employer sponsored retirement plan if you are planning to resign. If you are looking forward to a lump sum distribution, you can use the Rollover Planner to examine rollover to a traditional IRA, Roth IRA conversion and roll-over and tax treatment strategies. In order to determine the best type of IRA to meet your retirement needs, you can depend on the IRA Selector calculator. It has comprehensive sets of tools such as a Basic IRA Comparison, a Legacy Planning and Breakeven Analyzer Calculators.The best IRA calculators consider both the tax consequence and the eventual income both as a Traditional and a Roth.
You should also check the website of RothRetirement which is a complete web about Roth conversions. Fidelity Investments has its conversion evaluator. Dinkytown is also offering different financial calculators, including a very simple Roth with an easy to understand graphical output. SmartMoney Magazine has an online site including an electronic worksheet for IRA conversions. Vanguard Investments also has a conversion calculator.
The Bank of America conversion calculator is the most interactive because of sliders for input with the results instantly displayed on the same page. Additional calculators are those of MSN and CalcXML. Overall, you can depend on the Roth Retirement and SmartMoney versions as the best.
It is highly recommended to read the articles and opinions of IRA conversion expert, Robert Keeble. He has come up with his own CCH conversion software package, the Roth IRA Conversion Expert. This calculator tool can help you quickly analyze conversion options based on various rates of return and conversion through each tax bracket. For added knowledge, you should read the book titled the Rebirth of the Roth. The CPAs Ultimate Guide to Client Care.
The concept is to use these tools to guide you but the best approach is to consult a highly reputable and experienced lawyer, tax consultant, CPA, Financial Planning and Retirement Expert or a Roth Conversion Counsellor for their advice whether a conversion is perfect for you. If they use Roth Calculator tools, they can expound better and explain to you all you need to know in simple layman’s language. These Roth Ira Calculator resources are your valuable tools to help maximize the potentials of conversion!