ESOP Roth Conversion Calculator
What it costs to convert, and what it is worth later. You get the tax you would owe this year, and what the conversion could be worth by the time you retire compared with leaving the balance where it is. Directional only, and a real decision involves more than a calculator can hold.
The ESOP dollars you are thinking about moving into a Roth.
Everything before deductions. Wages, bonus, interest, dividends.
How long the money keeps growing before you touch it.
A steady yearly rate. Real returns move around far more than this.
After-tax value of the same dollars when you retire.
This is where it gets complicated.
An estimate is a starting point, not a decision. A real conversion involves bracket timing, Medicare surcharges, your plan's distribution rules, and how all of it fits the rest of your wealth. Talk to an advisor before you convert anything.
Schedule a ConversationThis calculator is a directional illustration only and is not tax, legal, or investment advice. Results are estimates based on the figures you enter and simplified modeling. Your actual outcome will differ.
What this assumes. You pay the conversion tax from outside cash rather than by withholding from the conversion itself, so the full amount lands in the Roth. If you do not convert, those same tax dollars are assumed to stay invested in a taxable account and are taxed at 15% on their growth at retirement. The balance you leave alone is taxed at retirement at the same rate you would pay today, so if your rate is higher later, converting compares better than shown. Federal tax only, using 2026 brackets and the standard deduction. Pennsylvania does not tax qualified retirement distributions after retirement age.
The tax estimate reflects federal ordinary income tax using 2026 brackets and the standard deduction. It does not account for itemized deductions, credits, state or local tax, the Net Investment Income Tax, Medicare IRMAA surcharges, the alternative minimum tax, deduction and credit phaseouts, or the specific rules and timing of your ESOP distributions. Any of these can change the result meaningfully. Roth conversions are generally irreversible.
James Walter Wealth Management and Kestra do not provide tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Investing involves risk including the potential loss of principal. Assumed rates of return are hypothetical and are not a guarantee of future results.
James Walter Wealth Management, 882 South Matlack Street, Suite 109, West Chester, PA 19382. (610) 731-8066.