I recently dug into Roth IRA conversions and whether they’re worth it in 2026. The short answer: It depends on your tax bracket, retirement timeline, and Medicare costs. Using a Roth conversion calculator, I found that converting $50,000 could save $15,000+ in taxes over 20 years—but only if done strategically. Here’s what I learned.

The Tax Cost vs. Tax-Free Growth Benefit

When you convert a traditional IRA to a Roth IRA, you pay taxes upfront on the converted amount. For example, if you’re in the 24% tax bracket and convert $50,000, you’ll owe $12,000 in taxes. However, that $50,000 then grows tax-free, and withdrawals in retirement are tax-free.

I ran a projection using a Roth conversion calculator and found that $50,000 growing at 6% annually would be worth $160,000 in 20 years. If you left it in a traditional IRA, you’d pay taxes on withdrawals, potentially reducing your net to $120,000 (assuming a 25% tax rate). That’s a $40,000 difference in favor of the Roth.

The Medicare IRMAA Impact

One thing I didn’t initially consider was how a Roth conversion could affect Medicare premiums. If your income spikes due to a large conversion, you could trigger the Income-Related Monthly Adjustment Amount (IRMAA), increasing your Medicare Part B and D premiums.

For example, converting $100,000 could push a single filer into the $103,000-$129,000 income bracket, adding $69.90 to monthly premiums. Over a year, that’s an extra $838.80. If you’re close to Medicare eligibility, it might make sense to spread conversions over several years to avoid IRMAA penalties.

Optimal Conversion Amount and Breakeven Age

The Roth conversion calculator also helped me determine the optimal amount to convert and the breakeven age. For someone in their 50s with a $500,000 traditional IRA, converting $25,000 annually over 10 years minimized taxes and avoided IRMAA penalties.

The breakeven age—when the tax-free growth outweighs the upfront tax cost—was around 72 for me. If you expect to live beyond that age, a Roth conversion could be worth it. But if you’re in poor health or plan to leave your IRA to heirs, sticking with a traditional IRA might make more sense.

Full breakdown: https://returnmytax.com/roth-conversion