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Federal Tax Brackets Rate Individuals Married Filing Jointly 12% $9,526 to $38, 700 $19,051 to $77,400 22% 38,701 to $82,500 $77,401 to $165,000 $82,501 to $157,500 $165,001 to $315.000 $157,501 to $200,000 $315,001 to $400,000 NYS Tax Brackets Tas 2017 New York Income Tax Bad TY 2017-2018 $43,000.00 S161,350,00+ $323,200.00 6.85% S2.155.350.00 NYC Tax Brackets Married, Filing Jointly New York Taxable Income Rate S45,000 - $90,000 3.591% 590,000 - $500,000 3.68% S500.000+ We will now run the numbers to show the power of tax free growth. Imagine you are 18 years old and you have $5000.00 you would like to invest. Assume you have invested in an S&P 500 fund and your money will double in value every 7 years. Create 2 charts. One will show your investment in a Roth IRA and the other will show your investment in a Age Roth Traditional IRA 18 $5000 $5000 25 $10,000 $10,000 32 $20,000 $20,000 39 $40,000 $40,000 46 $80,000 $80,000 53 $160,000 $160,000 60 $320,000 $320,000 (WTD) Now we will calculate how much you will have left over after taxes. Assume that you will pay 40% tax on the total amount of the Traditional IRA and that you will pay ZERO% tax on the total amount of the Roth IRA. What will be your walk away after tax amounts for? Roth 39 18 $5000 $5000 25 $10,000 $10,000 32 $20,000 $20,000 $40,000 $40,000 46 $80,000 $80,000 53 $160,000 $160,000 60 $320,000 $320,000 (WTD) Now we will calculate how much you will have left over after taxes. Assume that you will pay 40% tax on the total amount of the Traditional IRA and that you will pay ZERO % tax on the total amount of the Roth IRA. What will be your walk away after tax amounts for? Roth Traditional Based on the information in the chart you created, in which of the 2 IRA vehicles would you invest? Explain with numeric details to back BENELITS