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E-File's 2025 Tax Calculator & Vanguard's Roth Conversion Calculator

beebee
edited October 5 in Other Investing
These calculators were shared this week by Rob Berger. Seemed worth sharing.
This Tax Return and Refund Estimator is for tax year 2025 and currently based on 2024/2025 tax year tax tables. As soon as new 2025 relevant tax year data has been released, the tool will the updated accordingly.
efile.com/tax-return-calculator-for-2025-refund-estimator

Here's Vanguard Roth Conversion Calculator:
Conventional wisdom states that if you expect your client’s future tax rate to be lower than their current tax rate, it would not make sense to do a Roth conversion. However, Vanguard research shows that you should consider additional factors to determine a “break-even tax rate” which will help you decide whether or not to convert your client’s traditional IRA to a Roth IRA or traditional 401(k) to a Roth 401(k).
vanguard.com/tax-center/tools/roth-betr-calculator

2025 Tax & Retirement Contribution Guide:
https://advisors.vanguard.com/content/dam/fas/pdfs/FATXGD10.pdf

*Vanguard's link seems to be missing the saver's credit...here's info is:
savers-tax-credit-2025.pdf

Comments

  • DrVenture
    edited October 5
    @bee Thanks. Timely for me, as I contemplate Roth conversions starting possibly 2026 or 2027.

    My goal is to stay below the 24% tax bracket at RMD time. The calculator forces some assumptions, of course. And I previously determined that a Roth conversion adds to your income for that tax year. So, I may delay conversions an additional year to try and use the 0% LTCG rate and sell some highly appreciated stock.

    What complicates things is that my state does not tax retirement income, but does tax LTCG at ordinary income tax rates. So, one strategy sort of offsets the other. I definitely need to study this more.

    Between the assumptions and unknown variables (age, tax rates, mortality, income levels) I think that one needs to make, at best, an educated guess.

    I like this calculator too: https://www.irscalculators.com/tax-calculator
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