The opportunity cost argument surrounding Roth conversions suggests that an opportunity is lost by paying the conversion tax upfront instead of investing it. This argument claims that investors lose future earnings that the funds could have produced.

Download “Roth Conversions – Dispelling the Opportunity Cost Argument” for our argument dispelling this belief. There is no opportunity cost in terms of lost investment gains if the tax rates are the same at conversion and later at distribution.

For professional assistance evaluating Roth conversion strategies, contact our office at questions@richmondbrothers.com or 517-435-4040 to
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