Given the following data:

Annual contribution : $ 7,500

pre-retirement tax bracket : 26%

post -retirement tax bracket: 15%

Effective rate: 9%

Investment years:25

Calculate the available retirement income (after tax) for 1) pre tax contribution and 2) post tax contribution.

NOTE: For the post tax contribution, reduce the contribution amount by the tax you would have to pay on that amount BEFORE calculating the final annuity amount.

Check my work:

I got $539,968.2134 for the pretax contribution, and

$420,388.978 for the post tax contribution (after reducing the contribution amount by the tax you would have to pay on that amount).

Thanks