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If your current Traditional IRA Account has a balance of $15,000.00 and you have 10 years until retirement and expect to have an annual rate of return of 8.00% before retirement and a federal income tax rate of 28.00%. Assuming you will spend approximately 20 years in retirement and expect to have an annual rate of return of 6.00% during retirement and a federal income tax rate of 15.00% during retirement, your estimated account value at retirement will be $32,383.87 with an annual distribution amount of $2,823.37 for a total of $56,467.48 in distributions. If you leave your funds in a Traditional IRA account, you will have $4,200.00 in taxes due at conversion and a lost investment opportunity amount of $7,352.99 with a total tax amount due of $7,352.99 leaving you with a net after-tax value of $49,114.49. If you convert your Traditional IRA account to a Roth IRA account, you will have $423.51 in post retirement tax due with a total tax amount due of $8,470.12 leaving you with a net after-tax value of $47,997.35. Your greatest net value would be a Traditional IRA: +$1,117.14
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