Have you heard about the opportunity cost argument against Roth conversions? Some believe there is a lost opportunity cost by doing a Roth conversion. They argue that the funds used to pay the conversion tax could have been otherwise invested and that investment return opportunity is lost.
Well, I’m here to dispel this argument –it’s false because there is no opportunity cost in terms of lost investment gains if the tax rates are the same both at conversion and later at distribution. Still don’t believe me?
Click below to download “Roth Conversions-Dispelling the Opportunity Cost Argument” to check out the math behind my argument.
Or, for professional assistance evaluating Roth conversion strategies, contact Chris Robinson at our office, 940-464-4104, to schedule a call.
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