David L. Roth and his business partner Eddie V. Hale both have traditional IRAs. Each has $500,000 in his IRA account and $185,000 in cash outside of the IRA. They are both in the 37% federal tax bracket. If David decides to convert his IRA to a Roth (of course!) IRA, which of the following is true immediately?

Group of answer choices

They both have purchasing (spending) power equal to $500,000.

Eddie's spending power is more than David's.

Neither of them has any spending power.

David's spending power is more than Eddie's.