Question: Required informotion Problem 13-78 (LO 13-4) (Static) [The following information applies fo the questions displayed below.] John is trying to decide whether to contribute to
Required informotion Problem 13-78 (LO 13-4) (Static) [The following information applies fo the questions displayed below.] John is trying to decide whether to contribute to a Roth 404(k) or a traditional 401(k). He plans on making a $5,000 contribution to whichever plan he decides to fund. He currently pays tax at a 32 percent marginal income tax rate, but he believes that his marginal tax rate in the future will be 28 percent. He intends to leove the money in the Roth 401(k) or traditional 401(k) for 30 years, and he expects to eam a 6 percent before-tax rate of return on the account. Note: Do not round intermediate calculations. Round your final answers to nearest whole dollar amount. Problem 13-78 Part b (Static) b. How much will John accumulate after taxes if he contributes to a traditional 40yk)(consider only the funds contributed to the traditional 401(k))
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
