Alena is single and 68 years old and is receiving monthly income in retirement of $3,500.  Calculate and show the difference in tax treatment between the following 4 independent alternatives:

3,500/month comes from a Roth IRA that was established in 2002

3,500/month comes from a regular IRA where all contributions were tax deductible

3,500/month comes from a life annuity that was established with an investment of $450,000

3,500/month comes from a 401(k) distribution where 109,000 of the contributions were made with previously taxed dollars.

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Lets calculate the difference in tax treatment for each of the four alternatives 1 Roth IRA In a Roth IRA contributions are made with aftertax dollars ... View the full answer