John is trying to decide whether to contribute to a Roth IRA or traditional IRA. He plans
Question:
a. How much will John accumulate after taxes if he contributes to a Roth IRA (consider only the funds contributed to the Roth IRA)?
b. How much will John accumulate after taxes if he contributes to a traditional IRA (consider only the funds contributed to the traditional IRA)?
c. Without doing any computations, explain whether the traditional IRA or the Roth IRA will generate a greater after-tax rate of return.
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Related Book For
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
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