IRA’S AND RETIRING PLANS: DEFUSING THE TAX TIME BOMB

If Melvin keeps all the money in a traditional IRA and withdraws at age 70, he’ll net $520,000 based on the assumptions above. If Melvin converts, he’ll net $800,000 at age 70. However, in the example, it cost him an extra $35,000 in out-of-pocket taxes today to get the $800,000 at age 70. ................
................