l ellent Account Withdrawal. In need of extra cash, Troy and Lilly decide to withdraw $8,000 from their traditional IRA They are both 40 years old They are in a 25% marginal tax bracket what will be the tax consequences of this withdrawal? 9. IRAs. Lisa and Mark married at age 22. Each year until their 30th birthdays, they put $4,000 into their traditional IRAs. By age 30, they had bought a home and started a family Although they continued to make contributions to their employer-sponsored retirement plans, they made no more contributions to their IRAs. If they receive an average annual return of 8%, how much will they have in their IRAs by age 60? What was making a contribution of $4,000 to a traditional IRA. They continued making these contributions annually until age 60 If the average return on their investment was 8%, how much was in their IRA at age 60? What was their total investment? began 11. Tax Savings. Lloyd and his wife, Jean, have no retirement plan at work, but they contribute $4,000 each year to a traditional IRA They are in a 25% marginal tax bracket What tax savings will they realize for these contributions annually? Employer Matching. contributions How much will Ezra accumulate in 20 years if he contributes 4% of his salary of S100 000 per year assuming his account earns an 8% annual return? 12 Ezra works for a firm that offers a 100% match up to 4% of his salary on retirement 13. Profit Sharing. Cedrick works for an employer that has a profit sharing retirement system Assuming Cedrick made $133,000 last year, what is the maximum amount his employer can contribute to his retirement account 14. Ethical Dilemma. Nancy and Al have been planning their retirement since they married in their earty 20s, In and with two children in college, they are finding it harder to save and fear they will fal short of their mid-40s the savings needed to reach their retirement goals, Nancy's rich Uncle Charlie assures her she has nothing to worry about. "You are my favorite niece and because you are so good to me, I am leaving my entire estate to you," he said. Nancy and Al begin devoting considerable time and energy to making Uncle Charlie's golden A m 1231 PM 12/5/2018 zra works for a firm that offers a 100% h will Ezra accumulate in 20 years he contributes 4% of his salary of $100,000 per stand. match up to 4% of his salary on retirement r muc year assuming his account earns an 8% annual return? Cedrick works for an employer that has a proft sharing retirement system Assuming Cedrick made $133,000 last year, what is the maximum amount his employer can contribute to his reltirement account? 14. Ethical Dilemma. Nancy and Al have been planning their retirement since thoy maned in their early 20s In their mid-40s and with two children in college, they are finding it harder to save and fear they will fall short of the savings needed to reach their retirement goals. Nancy's rich Uncie Charlie assures her she has nothing to worry about. "You are my favorite niece and because you are so good to me, I am leaving my entire estate to you," he said. Nancy and Al begin devoting considerable time and energy to making Uncle Charie's golden years as enjoyable as possible Factoring in their anticipated inheritance, Nancy and Al look forward to a comfortable retirement Ten years later, Uncle Charlie passes away. At the reading of his will, Nancy is surprised to learn that Uncle Charlie made the same comment to her four cousins. As the will is read, all five of the cousins are horrified to find that Uncle Charlie left his entire estate, valued at over $2 million, to a home for stray cats a. Fully discuss your views on the ethics of Uncle Charlie's actions b. Looking at Nancy and Al's experience, what lessons about retirement planning can be learned? 12-32 PM 12/5/2018 Oo l ellent Account Withdrawal. In need of extra cash, Troy and Lilly decide to withdraw $8,000 from their traditional IRA They are both 40 years old They are in a 25% marginal tax bracket what will be the tax consequences of this withdrawal? 9. IRAs. Lisa and Mark married at age 22. Each year until their 30th birthdays, they put $4,000 into their traditional IRAs. By age 30, they had bought a home and started a family Although they continued to make contributions to their employer-sponsored retirement plans, they made no more contributions to their IRAs. If they receive an average annual return of 8%, how much will they have in their IRAs by age 60? What was making a contribution of $4,000 to a traditional IRA. They continued making these contributions annually until age 60 If the average return on their investment was 8%, how much was in their IRA at age 60? What was their total investment? began 11. Tax Savings. Lloyd and his wife, Jean, have no retirement plan at work, but they contribute $4,000 each year to a traditional IRA They are in a 25% marginal tax bracket What tax savings will they realize for these contributions annually? Employer Matching. contributions How much will Ezra accumulate in 20 years if he contributes 4% of his salary of S100 000 per year assuming his account earns an 8% annual return? 12 Ezra works for a firm that offers a 100% match up to 4% of his salary on retirement 13. Profit Sharing. Cedrick works for an employer that has a profit sharing retirement system Assuming Cedrick made $133,000 last year, what is the maximum amount his employer can contribute to his retirement account 14. Ethical Dilemma. Nancy and Al have been planning their retirement since they married in their earty 20s, In and with two children in college, they are finding it harder to save and fear they will fal short of their mid-40s the savings needed to reach their retirement goals, Nancy's rich Uncle Charlie assures her she has nothing to worry about. "You are my favorite niece and because you are so good to me, I am leaving my entire estate to you," he said. Nancy and Al begin devoting considerable time and energy to making Uncle Charlie's golden A m 1231 PM 12/5/2018 zra works for a firm that offers a 100% h will Ezra accumulate in 20 years he contributes 4% of his salary of $100,000 per stand. match up to 4% of his salary on retirement r muc year assuming his account earns an 8% annual return? Cedrick works for an employer that has a proft sharing retirement system Assuming Cedrick made $133,000 last year, what is the maximum amount his employer can contribute to his reltirement account? 14. Ethical Dilemma. Nancy and Al have been planning their retirement since thoy maned in their early 20s In their mid-40s and with two children in college, they are finding it harder to save and fear they will fall short of the savings needed to reach their retirement goals. Nancy's rich Uncie Charlie assures her she has nothing to worry about. "You are my favorite niece and because you are so good to me, I am leaving my entire estate to you," he said. Nancy and Al begin devoting considerable time and energy to making Uncle Charie's golden years as enjoyable as possible Factoring in their anticipated inheritance, Nancy and Al look forward to a comfortable retirement Ten years later, Uncle Charlie passes away. At the reading of his will, Nancy is surprised to learn that Uncle Charlie made the same comment to her four cousins. As the will is read, all five of the cousins are horrified to find that Uncle Charlie left his entire estate, valued at over $2 million, to a home for stray cats a. Fully discuss your views on the ethics of Uncle Charlie's actions b. Looking at Nancy and Al's experience, what lessons about retirement planning can be learned? 12-32 PM 12/5/2018 Oo
