Roth Conversion Calculator
See the estimated tax on a standard Roth conversion, then add a NAV discount to see how much a discounted conversion using a privately valued real estate interest could save.
Your conversion
Traditional IRA or 401(k) balance you plan to move to a Roth.
NAV discount
A privately held real estate interest is valued at fair market value. Early in a project that appraised value can sit well below the amount contributed, so you convert on the lower value. The actual discount is set per offering by a third-party appraisal firm.
Standard Roth conversion
Taxed on the full amount
Discounted Roth conversion
Taxed on the appraised value (35% lower)
Hypothetical and for education only. Estimates apply the marginal rates you select to the full conversion and do not account for bracket transitions, NIIT, IRMAA, or the rest of your return. The NAV discount is illustrative; any actual valuation discount is set per offering by a third-party appraisal firm under IRS valuation guidance (Revenue Ruling 59-60) and is not guaranteed. In a discounted conversion the full position still moves into the Roth, where future growth can come out tax-free. This is not tax advice; consult your CPA or a qualified tax advisor.
Roth-conversion-eligible offerings
These offerings are currently flagged Roth-conversion-eligible in our marketplace and are shown for reference only. They are independent of the figures you entered above. Every offering is different; any valuation discount is set per deal by a third-party appraisal firm and is not guaranteed.
Montego Capital Fund 5 Ltd
Montego's Capital Fund 5 represents an investment portfolio providing accredited investors access to mineral and royalty assets providing both income and growth. The Montego Capital Fund 5 allows investors the ability to participate in the oil and gas industry without the personal risks associated with drilling or working interest risk exposure. The fund will represent a diversified investment in multiple oil and gas properties across the Permian Basin and other prolific shale formations in the United States. Additionally, investors have the potential for substantial tax deductions using both percentage and cost depletion accounting procedures.
Frequently asked questions
What is the difference between a standard and a discounted Roth conversion?+
In a standard conversion, the taxable amount equals the full value of the assets you move into the Roth. In a discounted conversion, the assets are a privately held real estate interest appraised below the amount contributed because it is illiquid and represents a minority stake. You pay tax on the lower appraised value while the full position moves into the Roth.
What is the NAV discount in this calculator?+
NAV is net asset value. The discount is the reduction in fair market value of a privately held real estate interest, established by a third-party appraisal firm engaged by the sponsor and reported to your custodian. The slider models different scenarios; the actual discount is offering-specific and is not guaranteed.
Is a Roth conversion calculator accurate?+
It gives an estimate based on your inputs. It is useful for ballpark comparisons but does not account for marginal-bracket transitions, IRMAA thresholds, Social Security provisional income, or full state-tax complexity. For precise planning, run it alongside your CPA’s projection.
Can I use this for a 401(k) to Roth conversion?+
Yes. A 401(k) to Roth conversion typically means rolling the 401(k) into a traditional IRA first, then converting. The tax treatment is the same — ordinary income in the year of conversion. Enter the rollover amount; the discount applies if the rollover IRA is deployed into a private real estate interest before converting.
How much should I convert each year?+
Many advisors use a bracket-filling approach: converting enough to use lower-bracket capacity without spilling into the next bracket. For large balances, spreading conversions across several years often produces lower total tax than one large conversion. Each year is a separate tax event — model it with a CPA.
Calculator disclosures
This calculator is provided for general educational and illustrative purposes only. It is not a tool for making investment, tax, or financial decisions and does not constitute tax, legal, investment, or financial advice.
Estimates only. The figures are mathematical illustrations based on the values you enter. They apply the marginal rates you select to the full conversion and do not account for bracket transitions, the Net Investment Income Tax, IRMAA, Social Security taxation, state-tax nuances, or the rest of your return. They do not represent actual or guaranteed tax outcomes; run any estimate alongside your CPA's projection.
The NAV discount is illustrative. The discount you enter is a hypothetical input. Any actual valuation discount on a privately held real estate interest is offering-specific, established by a third-party appraisal firm engaged by the sponsor under IRS valuation guidance (including Revenue Ruling 59-60), and is not guaranteed.
No offer of securities. Nothing in this calculator or the offerings shown is an offer to sell, a solicitation to buy, or a recommendation of any security. The Roth-conversion-eligible offerings are shown for reference only, are independent of the figures you enter, and every offering is different. Offers may be made only to qualified investors through a Private Placement Memorandum. Consult your own CPA or qualified tax advisor before acting.
Disclosure
Tax Complexity and Investment Risk
Tax laws and regulations, including but not limited to Internal Revenue Code Section 1031, bonus depreciation rules, cost segregation studies, and other tax strategies, contain complex concepts that may vary depending on individual circumstances. Tax consequences related to real estate investments, depreciation benefits, and other tax strategies discussed herein may vary significantly based on each investor's specific situation and current tax legislation. Anchor1031, LLC and Quincy Wells Capital, LLC make no representation or warranty of any kind with respect to the tax consequences of your investment or that the IRS will not challenge any such treatment. You should consult with and rely on your own tax advisor about all tax aspects with respect to your particular circumstances. Please note that Anchor1031 and Quincy Wells Capital, LLC do not provide tax advice.
The information contained in this article is for general educational purposes only and does not constitute legal, tax, investment, or financial advice. This content is not a recommendation or offer to buy or sell securities. The content is provided as general information and should not be relied upon as a substitute for professional consultation with qualified legal, tax, or financial advisors.
Tax laws, regulations, and IRS guidance regarding 1031 exchanges, opportunity zone investments, and related real estate strategies are complex and subject to change. Information herein may include forward-looking statements, hypothetical information, calculations, or financial estimates that are inherently uncertain. Past performance is never indicative of future performance. The information presented may not reflect the most current legal developments, regulatory changes, or interpretations. Individual circumstances vary significantly, and strategies that may be appropriate for one investor may not be suitable for another.
All real estate investments, including 1031 exchanges and opportunity zone investments, are speculative and involve substantial risk. There can be no assurance that any investor will not suffer significant losses, and a loss of part or all of the principal value may occur. Before making any investment decisions or implementing any 1031 exchange strategies, readers should consult with their own qualified legal, tax, and financial professionals who can provide advice tailored to their specific circumstances. Prospective investors should not proceed unless they can readily bear the consequences of potential losses.
While the author is a partner at Anchor1031, the views expressed are educational in nature and do not guarantee any particular outcome or create any obligations on behalf of the firm or author. Neither Anchor1031 nor the author assumes any liability for actions taken based on the information provided herein.