Question
Meredith, who is single, would like to contribute $6,500 to her Roth IRA. Her AGI is $139,000. In your computations, round any division to
Meredith, who is single, would like to contribute $6,500 to her Roth IRA. Her AGI is $139,000. In your computations, round any division to five decimal places. Round your final answers to the nearest dollar. a. What is the maximum amount that Meredith can contribute? b. Assume that Meredith's AGI is $100,000 and she plans to put $6,500 each year into her Roth IRA, hoping to earn 6% annually. What amount will accumulate in her Roth at the end of 20 years? The future value of an ordinary annuity at 6% for 20 years is 36.7856. c. In part (b), instead assume that Meredith puts the $6,500 into the Roth IRA for 15 years at 6%. How much will accumulate at the end of this period? The future value of an ordinary annuity at 6% for 15 years is 23.2760.
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South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
20th Edition
978-0357109144, 978-0357686652, 978-1305874824
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