Conversions of a traditional IRA to a Roth can differ individual to individual, even where the same sum of money is involved. Let’s take, for example, two individuals, each with $100,000 in a traditional IRA, that the funds were identically invested and would double over 10 years. The tax rate was posed to be 30%. The first individual paid the $30,000 to convert her IRA to a Roth IRA, and as a result had $70,000. At the end, she had $140,000 to withdraw tax-free. The other individual didn’t convert and his $100,000 grew to $200,000. But when he went to withdraw it he owed $60,000 and was also left with $140,000, the same amount as the other individual who did convert. What makes a Roth conversion smart or not is if the tax rates vary, and if the rate on the conversion is less than the anticipated tax rate at the time of withdrawal. If you’d like another pair of eyes on your figures as you crunch them, call us. We’re always here to help.