Should You Do a Roth Conversion?
Calculate the tax cost of converting Traditional IRA/401k to Roth. See break-even year and long-term savings.
Comparison
PPF: 7.1% guaranteed, 15-year lock-in, fully tax-free (EEE)। ELSS: 12-15% historical (equity), 3-year lock-in, LTCG 12.5% after ₹1.25L। PPF: safe, guaranteed। ELSS: higher return potential, shorter lock-in, market risk।
Strategy
Both under 80C (₹1.5L limit)। Conservative: PPF dominant। Aggressive: ELSS dominant। Balanced: 50-50 split। Under 40: more ELSS (time for recovery)। Near retirement: more PPF।
The "Roth conversion ladder" is a key early retirement strategy: retire, live off taxable savings for 5 years while converting Traditional to Roth at low tax rates (filling the 10-12% brackets), then access the converted funds tax-free. This legally minimizes lifetime tax burden for early retirees.
