For Illustrative Purposes Only
See the Difference a Self-Directed IRA Can Make
Compare your current retirement plan's projected growth against a Self-Directed Roth IRA earning monthly returns through alternative investments.
⚠ This calculator is for educational illustration only and does not constitute financial, tax, or legal advice. Consult a qualified professional before making any retirement planning decisions. Past performance of any investment strategy does not guarantee future results.
Your Situation
Personal & Financial Info
yrs
yrs
yrs
$
%
Used to calculate Roth conversion cost
%
Applied to Traditional plan distributions
Traditional Plan
401(k) / Traditional IRA
$
$
Added each year during accumulation
% / yr
Typical mutual fund / index fund range: 8–12%
$
Pre-tax; will be taxed at retirement bracket
% / yr
Often reduced as portfolio becomes conservative
Self-Directed Roth IRA
Alternative Investment Fund
$
Taxes on conversion are deducted from this amount
% / mo
Net to you after broker & fund manager fees
$
Additional annual deposits (optional)
$
TAX-FREE — no tax due on Roth distributions
Roth Conversion Tax Cost
Converting a Traditional 401(k) or IRA to a Roth IRA is a taxable event. The converted amount is added to your taxable income in the year of conversion. The tax is deducted from your rollover amount — your net invested balance is what remains after that tax cost.
—
—
—
—
—
Pre-tax balance + cumulative distributions
—
Tax-free balance + cumulative distributions
—
Additional value with Self-Directed strategy
—
Taxes avoided on Roth distributions vs Traditional
Portfolio Value Over Time
Balance by age · Dashed line = distribution phase · Shaded = retirement period
Traditional Plan (pre-tax)
Self-Directed Roth IRA (tax-free)
Year-by-Year Comparison
IMPORTANT DISCLAIMER: This calculator is provided for educational and illustrative purposes only. It does not constitute financial, tax, investment, or legal advice. The monthly return rates shown for the Self-Directed IRA are hypothetical illustrations only — alternative investments carry significant risk, including the risk of loss of principal. Returns shown do not represent any specific fund or investment. Tax rates, IRS contribution limits, and regulations are subject to change. Results shown are projections based on fixed assumptions and do not account for inflation, fees beyond what is specified, market volatility, or other factors. Consult a qualified financial advisor, CPA, and/or attorney before making any retirement planning decisions. Self-directed IRAs involve complex rules including prohibited transaction rules, unrelated business taxable income (UBTI), and required minimum distributions (RMDs) for certain account types. Rollover transactions must be executed properly to avoid unintended tax consequences.