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Problem 19 (Roth versus Traditional Plans - 10 points) Assume you earn $100,000 and your current tax rate 24%. You expect to pay a future
Problem 19 (Roth versus Traditional Plans - 10 points)
Assume you earn $100,000 and your current tax rate 24%. You expect to pay a future tax rate of 32%. Assuming you invest $20,000 per year in a tax-deferred plan (e.g., 401K), which plan is better for you, ROTH or TRADITIONAL? Why?
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