Kit made contributions to a Roth IRA over 30 working years. His contributions averaged $4,000 annually. Kit
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Kit made contributions to a Roth IRA over 30 working years. His contributions averaged $4,000 annually. Kit was in the 24% tax bracket during his working years. The average annual rate of return on the account was 6%. Upon retirement, Kit stopped working and making Roth IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Kit dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Kit's Roth IRA at retirement? Assume annual compounding.
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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