Roth Conversion Scenarios and Roth Conversions in the Plan

I ran a Roth conversion scenario and applied the same amount to convert to my Roth account in my plan. The results are very different from the scenario. Why aren't they the same?

The Roth conversion scenario will assume that the account the conversion is going into will have the same annual return as the account the money is coming from. This way you are comparing apples to apples with the conversion scenario.


If you add a conversion to a Roth investment in the actual plan, the program will not assume that the annual returns are the same. It will still use the annual return for the Roth investment that the converted money is going into. One way to handle this is to set the annual return for the Roth to be the same as the account that the money is coming out of.

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