Automated Roth Conversion Tax Optimizer
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Automatically calculates optimal IRA-to-Roth conversion amounts to minimize lifetime taxes while avoiding IRMAA thresholds and maximizing ACA subsidies.
Added Jan 30, 2026
6 signals
The Problem
People with traditional IRAs and 401(k)s struggle to determine when and how much to convert to Roth accounts. They face complex tax calculations involving pro-rata rules, income bracket optimization, IRMAA Medicare premium thresholds, and ACA subsidy cliffs. Most either convert too much (triggering unnecessary taxes) or too little (missing tax-efficient opportunities).
Potential Solution
A smart calculator that connects to brokerage accounts, analyzes current balances across all retirement accounts, and models multi-year conversion strategies. It factors in projected income, tax brackets, IRMAA thresholds, ACA subsidy limits, and RMD requirements to generate an optimized annual conversion schedule with specific dollar amounts and projected tax savings.
Why Now?
The Roth conversion opportunity is particularly relevant as people anticipate potential tax rate changes, more workers have mixed pre-tax and Roth balances, and early retirees increasingly need to navigate ACA subsidies alongside retirement account decisions.
Will this plan to access my 401k and qualify for ACA subsidies work?
I am hoping to get some input on this plan. I am 56 and I plan to "semi- retire" in the next year or so. My 401k has a total of 3.1 million and about 900k of that is made up of Roth contributions. Luckily, my 401K allows for the rule of 55. Our annual cost of living is about 120-130K. I have 10 years of a mortgage left and my kids both have good sized 529 college funds that I have contributed to since they were born. When I leave my employer I plan to work part time (I am a doctor), which should bring in about 50-75k per year (or more if I want to work more). The issue is that I am facing 9-10 years of health insurance premiums for me (and possibly several years for my kids). I have 2 kids in the household, one just graduated college and the other just graduated high school. To meet our cost of living of 120-140k per year, I will need to access around 75k per year from my retirement savings to supplement my part time income -- but I want to keep my AGI below the subsidy cliff. I have been told by Fidelity that I won't be able to take out only Roth *contributions* under the rule of 55 after I leave my employer, but they say I can roll over the Roth portion of my 401K into a Roth IRA and then take out the contributions which won't affect my AGI or trigger any penalties since I am taking out only contributions prior to 59 1/2. Luckily I have a small Roth IRA that is about 10 years old that I can roll my Roth 401k money into. Once I roll over the Roth money, I should be able to take out funds from the Roth IRA as needed each year to meet my cost of living while keeping my AGI under the subsidy cliff cutoff (currently 106k for a family of 3 or 128k for a family of 4 in my state). I have done the math and have enough Roth contributions to last until I am 59 1/2. Beside the fact that it isn't usually preferable to use Roth money first, does this plan sound viable? Over the course of 9 years subsidies could save me over 100k.
401k vs Roth 401k: RMD and IRMAA tax implications
Age 35, married with one child. Looking to retire around 55-60 (spouse is stay at home mom) • Currently maxing out my 401k ($24,500/year), Roth IRA ($7,500/year), Spouse’s Roth IRA ($7,500) and contributing $5,000/year to a taxable brokerage (also contribution $6,000 a year to child’s 529) Salary: $130k-$150k at 12% tax bracket (no raises) Current balances: • $290k in Traditional 401(k) • $100k in Roth 401(k) • $41k in my Roth IRA • $18k in Spouse’s Roth IRA • $230k in taxable brokerage • Employer match: \\\~$3,000/year (goes into Traditional 401(k)) Concerned about future RMDs and IRPAA in my 70s creating a long-term “tax bomb” due to a large Traditional 401k balance • Right now, all new 401(k) contributions go to Traditional at 21% \*\*Considering changing contributions to 16% Roth 401k and 5% 401k. Questions: • How much does shifting more into Roth 401(k) now realistically reduce future RMDs and lifetime taxes? \* I want to retire early and still leave at least $1-2 million to my future children. Trying to determine the best outcome path now to avoid large taxes that I could have avoided with planning
401k rollover/ conversion strategy
I have ~250k in a 401k account from my previous employer (I rolled over employer 1 into employer 2, so its a combination). Its a mix of pre-tax and a small portion is Roth. That plan has great investing options and the fees are a little lower than my current plan (from employer 3) so I haven't moved it. Both 401k plans are in fidelity so its nkt like I forgot about it or don't have access. I learned of backdoor roth in 2024 (and started doing it) and found out my current plan allows for megabackdoor so started doing that last year. My current salary is 130k. I am maxing out my pre-tax 401k (stopped doing roth 401k after I started MBDR). And do an additional ~7% for MBDR. Current plan has ~150k in there. I am 38 yo and hope to retire by 60. What would be a good strategy for me? Should I be rolling over my older 401k anywhere- to current 401k or to IRA? In fidelity I didn't see an option to rollover just the roth portion when I checked (idk if I have to call and ask). Should I be maxing out my pre-tax 401k or put some % in Roth 401k? I am thinking from the perspective of what strategy would mean least anount of taxes. If any additional info is needed, please lmk.
Should I convert Traditional IrA to Roth?
About a year ago I left a job and have currently about $150,000 in that account. At the time I left I was moving to a small firm without a 401K plan, so I rolled into a traditional IRA. I've been investing in my Roth the last year. I understand that I can rollover the traditional but I would owe taxes on the $150,000 My question is, can the taxes be withheld from the conversion or will I be slapped with aarge tax bill? Any reason not to convert now?
Should I convert my Traditional IRA to a Roth?
About a year ago I left a job and have currently about $150,000 in that account. At the time I left I was moving to a small firm without a 401K plan, so I rolled into a traditional IRA. I've been investing in my Roth the last year. I understand that I can rollover the traditional but I would owe taxes on the $150,000 My question is, can the taxes be withheld from the conversion or will I be slapped with aarge tax bill? Any reason not to convert now?
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