Suppose Person C earns money in 2022, forever pays a 25% income tax rate and contributes $1,000 into a stock index fund. If C made $50,000 and the $1,000 was invested via their Roth IRA, then how much do they pay in income taxes for 2022? Years later in retirement once that $1,000 investment has grown to $10,000 and C withdraws it.

How much does C pay in taxes due to the withdrawal?

Answer rating: 100% (QA)

Step 1 In 2022 Cs total yearly income tax bill would rise to 12500 Because of the withdrawal C would not have to pay any taxes after they reached reti... View the full answer