Question: Problem 19 (Roth versus Traditional Plans - 10 points) Assume you earn $100,000 and your current tax rate 24%. You expect to pay a future

Problem 19 (Roth versus Traditional Plans - 10 points)

Assume you earn $100,000 and your current tax rate 24%. You expect to pay a future tax rate of 32%. Assuming you invest $20,000 per year in a tax-deferred plan (e.g., 401K), which plan is better for you, ROTH or TRADITIONAL? Why?

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