THIS POST HAS NOTHING TO DO WITH DESIGN AND CONSTRUCTION. However, I spent a lot of time figuring  out whether a Roth IRA conversion makes sense. I found complete junk on the internet. Here is my attempt to explain the rationale for conversion in case there are others out there searching for some logical arguments. I put this information in this blog, as I don’t have a better place for it.

These notes explain why, fundamentally, this conversion is beneficial. This is for the financially and mathematically sophisticated investor. If you don’t even know what a Roth IRA is, then go read the Motley Fool guide or something.

First, consider the very basic situation is which your tax rate today is the same as your tax rate in the future. For concreteness, assume your total tax rate is 40% (assuming for instance, a 35% federal rate and a 5% state rate and a state with policy similar to the federal). Assume your total long-term capital gains tax is 25%, now and in the future.

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