Roth IRA Conversions Could Put $3 Trillion in Play

61% of Fund Companies Step Up Roth Education Efforts

March 29, 2010

While the Roth IRA offers the tremendous advantage of tax-free investments, it has long been the stepchild of Individual Retirement Accounts. Traditional IRAs totaled $3.167 trillion in assets at the end of 2008, according to the Investment Company Institute. Roth IRAs, previously available only to those making less than $100,000, had only $173 billion. Since the new rule went into effect on Jan. 1, 61% of leading fund companies have been taking advantage of the enormous sales opportunity that Roth IRA conversions present by proactively educating investors.

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