I found this to be an interesting math calculation. Assume that you make 10 percent per year on your investments and you have an income tax rate of 30 percent. You convert $100 of your traditional IRA to a Roth, leaving $70 to invest tax free. A year later, you will have $77 in tax free money. But, suppose you do not convert to a Roth and keep the $100 in the traditional IRA. A year later, you have $110 in taxable money. At that time, you convert the $110 to a Roth and pay taxes of $33, leaving $77 in tax free money. So, in both cases, you have the same amount of tax free money. So, what is the point of converting to a Roth?
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