Because of what you learned in your Financial Skills class, you have decided to contribute annually to a Roth IRA account for the next 30 years until you retire.  You are determined to contribute $6,000 every year (the current maximum) of your after-tax income for the next 30 years. You choose a diversified stock and bond portfolio and will earn about 6% average during that time.    

By the time 30 years have passed, you will have approximately $475,000 in your account.  After the 30 years, how much will you owe in taxes each year if you withdraw $30,000 per year from the account and are in the 25% tax bracket?

Answer rating: 100% (QA)

Assuming that the entire balance in the Roth IRA account is composed of contributions ie no earnings ... View the full answer