inancial Planning Exercise 8 eciding between traditional and Roth IRAs Ijah James is in his early 30 and is thinking about opening an to. He cant decide whether to open a tradibonaydeductible IRA or a Roth IRA, wo he turns to you for help. a. To support your bripianation, you decide to run some comparative numbers on the two types of accounts; for starters, use a 35 -year period to show Eilah what contributions of $5,000 per year will amount to (after 35 years) if he can earn, say, 10 percent on his money. Round your answers to the nearest dollar. Traditional IRA Roth IRA Wil the tvbe of account he opens have any impact on this amount? Explain. b. Assuming that Eljah is in the 25 percent tax bracket (and will remain there for the next 35 years), determine the annual and total (over 35 years) tax savings hell enjoy from the $5,000-a-year contributions to his IRA, Contrast the (annual and total) tax savings he'd generate from a traditianal IRA with those from a foth IRA. If an answer is zero, enter " 0 ". Round your answers to the nearest dollar. Tradicional IRA annual tax savings: Poth IRA annual tax savings: Tracitional IRA total tax savings: Roth IRA total tax savings: c. Now, fast-forward 35 years. Given the size of Elijah's account in 35 years (as computed in part a), assume that he takes it all out in one lump sum. If he's now in the 25\% tax bracket, how much will he have. after taxes, with a traditional IRA as compared wath a foth If it? Round your answers to the nearest dollar. Traditional IRA: Roth IRA