Roth Conversion Calculator for Trump Accounts

Trump Account contributions are made with after-tax dollars — you don't get a tax deduction. This creates nondeductible basis in the account. When you convert to a Roth IRA, the IRS uses the pro rata rule to determine how much of each converted dollar is taxable:

• Basis percentage = Total contributions ÷ Account balance
• Taxable percentage = 1 − Basis percentage
• Each dollar converted = (basis %) tax-free + (taxable %) ordinary income

Example: If you contributed $60,000 and the account grew to $100,000, your basis is 60%. For every $1 you convert, $0.60 is tax-free and $0.40 is taxable. The IRS does not let you cherry-pick which dollars to convert — it must be proportional.

The key to a zero-tax conversion is keeping the taxable portion of each year's conversion under the standard deduction. If your child has no other income, they can convert enough each year so the taxable portion equals the standard deduction — and owe $0 in federal tax.

For larger accounts, spread the conversion over 2–4 college years when income is low. Even if your child has a part-time job, they're likely in the 10% or 12% bracket — far lower than the 22%+ they'll pay later in their career.