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Dr, C writes:

<<"construct a spreadsheet to run some scenarios using a worst case, expected case, and best case rate of return using ordinary income tax rates on the tradtional IRA"

I would love to do this. Are their any websites that can tell me how to do this ? Or is their some cheap software that can do this ? Or is their a smart-spreadsheet that someone can send me for this ?>>

If you have Excel or Lotus, you should be able to build a spreadsheet to handle it. I don't know of any online site that will allow you to do those computations, though. If you go to a CFP or the like, chances are it would cost you a couple-three hundred bucks to run the analysis. You could also do a stubby pencil drill. Start with the beginning balance of the rollover to a traditional IRA. On succeeding lines multiply the number immediately above that line by 1 plus your assumed rate of return. Go out as many years as you want. The last line will represent what the traditional or Roth will be at that time.

When you reach the last line, multiply that result by 1 minus your assumed marginal income tax rate. That will give you a very rough idea of what the after-tax result would be using the traditional IRA. For the Roth results, use the last line of your growth calculations again and subtract the income tax payment made on conversion, the interest paid on the loan to pay that tax, and the extra interest you paid by taking longer to clear your other debts. That will give you a rough idea of what the net growth would be in the Roth. For fun, repeat all those calcs for three rates of return: worst, expected, and best. Then make your decision. It's a simple analysis, but it will serve the purpose.

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