Imagine that your gross income is $135 thousand, your taxable income is $109 thousand, and the federal tax brackets are as follows:

0-9k: 10%

9-37k: 15%

37-89k: 25%

89-186k: 28%

186-405k: 33%

405k-407k: 35%

407k+: 39.6%

What would be the dollar amount of your total federal tax liability?

 

 

You have 6K of spare pre-tax income that you're looking to invest for the future. Today you are in a combined federal+state marginal tax bracket of 24%. You are anticipating that in 40 years your marginal tax bracket on your retirement income will be 16%.

If you decide to invest this money in a Roth IRA, and earn earn an average annual rate of return of 9.8%.

How much will you have in 40 years after withdrawing from the IRA?