Old MathJax webview

it looks like a tax but it's from our accounting course.. please please...

Required information New Hire Decisions: Roth or Traditional Retirement Savings Eva is excited to start her position in the Accounting Department of Longevity, Inc., a local company known for its employees staying with the company for their whole career. While filling out her new hire packet to select health care coverage and other benefits, Eva must decide which retirement plan option offered by Longevity, Inc. makes the most sense for her personal goals. Longevity, Inc. offers a Roth plan or a Traditional plan for retirement savings. Eva considers the following variables, constraints, and assumptions: Her starting salary is $120.000; Longevity, Inc. has historically increased employee compensation by 3% annually. She wants to contribute 5% of her annual salary to the retirement account, but must keep her after tax take home pay the same regardless of the chosen option. Longevity, Inc.'s retirement investment options are expected to earn a 12% rate of return. Eva expects to work for Longevity. Inc. for 30 years and will spend 20 years in retirement During retirement. Eva intends to exit her retirement account investments and will take an even distribution of the retirement savings each year. Eva's goal is to maximize her after tax cash flow in retirement but also wants to minimize the amount of tax she pays over her lifetime. Using 2019 income tax brackets and assuming a Standard Deduction increase of 1.67% each year, you have created the following Tableau visualization to help Eva make a decision. Mouse over the graphs to reveal specific amounts for use in answering the following questions. Note, the Data pane provides a summation of values based on the selected Year(s) slider and Roth or Traditional option in the dropdown menu. Data Market Value Average Tax Rate Salary T-sana! Retirement Co Roti Std Deduction Required information New Hire Decisions: Roth or Traditional Retirement Savings Eve is excited to start her position in the Accounting Department of Longevity, Inc., a local company known fo employees staying with the company for their whole career. While filling out her new hire packet to select he coverage and other benefits, Eva must decide which retirement plan option offered by Longevity, Inc. makes sense for her personal goals. Longevity, Inc. offers a Roth plan or a Traditional plan for retirement savings. Ev the flowing variables, constraints, and assumptions: . Her starting salary is $120,000; Longevity, Inc. has historically increased employee compensation by 39 She wants to contribute 5% of her annual salary to the retirement account, but must keep her after tax pay the same regardless of the chosen option. Longevity. Inc's retirement investment options are expected to earn a 12% rate of return. Eva expects to work for Longevity, Inc. for 30 years and will spend 20 years in retirement. During retirement, Eva intends to exit her retirement account investments and will take an even distribu element savings each year. Ens goal is to maximize her after tax cash flow in retirement but also wants to minimize the amount of tax sh time Using 2019 income tax brackets and assuming a Standard Deduction increase of 1.67% each year The following Tableau visualization to help Eva make a decision. Mouse over the graphs to reveal spe e answering the following questions. Note, the Data pane provides a summation of values based on ti sider and Roth or Traditional option in the dropdown menu. et alue Average Tax Rate Tradi Traditional Retirement Savings Eva is excited to start her position in the Accounting Department of Longevity- employees staying with the company for their whole career. While filling out he coverage and other benefits, Eva must decide which retirement plan option of sense for her personal goals. Longevity, Inc. offers a Roth plan or a Traditional the following variables, constraints, and assumptions: Her starting salary is $120,000; Longevity, Inc. has historically increased er She wants to contribute 5% of her annual salary to the retirement account, pay the same regardless of the chosen option. Longevity, Inc.'s retirement investment options are expected to earn a 12% Eva expects to work for Longevity, Inc. for 30 years and will spend 20 years During retirement, Eva intends to exit her retirement account investments an retirement savings each year. Eva's goal is to maximize her after tax cash flow in retirement but also wants to mini her lifetime. Using 2019 income tax brackets and assuming a Standard Deduction in created the following Tableau visualization to help Eva make a decision. Mouse over the following questions. Note the Data pane provides a summa the dropdown menu. for use in answering the following questions. Note, the Data pane provides a surmation Year(s) slider and Roth or Traditional option in the dropdown menu. Market Value Average Tax Rate $2,000,000 Traditional 20.0096 Roth 15.0096 $1,500,000 10.0096 $1,000,000 5.000 $500,000 2011 ec 40 50 10 20 raditions Average Tax Rate Data 15.00 Salary Retirement Co.. AGI Std Deduction Taxable income Traditional Tax After Tax Cash Tax (Benefit) D. $7,764,834 $285,453 57,479,382 (51,883,294) 55,596,087 $869,812 S6,609,569 $60.259 Year Roth ( D Retiremest Contribution Ta Tax Senefit Decriment SU 50 0 10 50 Retirement Contri Tax Tax (3enefit) Detrim 5 10 115 20 25 123 30 45 AG Salary Taxable ncome After Tax Cash Flow 15 20 25 BO 35 40 =tableau Prex 1 of 1 Next equired: a. What is the expected Market Value in year 30 under each option? b. What is the lifetime (year 1 through 50) Taxable income and Tax expected to be if Eva chooses c. Under which option will Eva pay less Tax over her lifetime? d. Which option has a lower average tax rate over her lifetime? e. Which option maximizes Eva's After Tax Cash Flow in retirement? Complete this question by entering your answers in the tabs below. Req a Reg b Rego Req d Req e What is the expected Market Value in year 30 under each option? Traditional $ 7,764,834 1,500,000 Roth $ Beeb Tule tabs below. Reeb Reqc Reg d Rege the lifetime (year 1 through 50) Taxable Income and Tax expected to be if Eva choos 19 2.000.000 1.500.000 ( Reqa Reqc > d. Which option has a e. Which option maximizes Eva's After Tax Cas Complete this question by entering your answers in the tabs below. Reba Reg ble Reqc Req e Regd What is the lifetime (year 1 through 50) Taxable income and Tax expected to be if Eva chooses t Bccount? 2000.000 $ 1.500.000 ( Reqa Reqc > e. Which option maximiz References Complete this question by entering your answers in the tab Req a Reg b REC Reg d Rege Under which option will Eva pay less Tax over her lifetime? Roth Complete this question by entering your answers in the tabs below Reg a Req b Req c Reg d Rese Which option maximizes Eva's After Tax Cash Flow in retirement? Traditional Dollar amount: d. Which option has a e. Which option maximizes Eva's After Tax Cas Complete this question by entering your answers in the tabs below. Reba Reg ble Reqc Req e Regd What is the lifetime (year 1 through 50) Taxable income and Tax expected to be if Eva chooses t Bccount? 2000.000 $ 1.500.000 ( Reqa Reqc > e. Which option maximiz References Complete this question by entering your answers in the tab Req a Reg b REC Reg d Rege Under which option will Eva pay less Tax over her lifetime? Roth Complete this question by entering your answers in the tabs below Reg a Req b Req c Reg d Rese Which option maximizes Eva's After Tax Cash Flow in retirement? Traditional Dollar amount: