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 popular “chunk conversions under the $15,000 standard deduction” story only works if the owner is an independent filer — they cannot be claimed as a dependent, and they are not a Form 8615 “child” that year.

A typical supported student is different. Their standard deduction is about $1,350 (or earned income + $450). Taxable conversion earnings above about $2,700 are taxed at the parent’s rate. College years on parental support are often a costly window, not a free one. Waiting until age 24 — or until they provide more than half their support from wages — can be cheaper.

Deep dives: Roth conversion strategy and does the kiddie tax apply?