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Niles has $2,000 he considers his emergency fund. Niles contributed the money to a Roth IRA at his brokerage firm. The invested funds in the
- Niles has $2,000 he considers his emergency fund. Niles contributed the money to a Roth IRA at his brokerage firm. The invested funds in the IRA earned 5% this year and brokerage firm charged total fees of $75. His marginal tax rate is 22%.
- Calculate the balance of the fund after one year, not accounting for fees.
- Suppose he has an unexpected car repair of $1,000 and must make a withdrawal. What are the penalties and taxes associated with this withdrawal?
- What does Niles have left after making the withdrawal and paying all relevant penalties, fees, and taxes?
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Banking With Integrity The Winners Of The Financial Crisis
Authors: Dr Heiko Spitzeck , Dr Michael Pirson, Dierksme , Dr. Heiko Spitzeck , Prof. Claus Dierksmeier, Dr. Michael Pirson
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