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Required information The following information applies to the questions displayed below Yuki tage 45 at year-end has been contributing to a traditional IRA for years
Required information The following information applies to the questions displayed below Yuki tage 45 at year-end has been contributing to a traditional IRA for years oldeductible contributions, and her RAIS now worth $34.000. She is trying to decide whether she should convert her traditional IRA into a Roth IRA. Her current marginal tax rate is 24 percent. She plans to withdraw the entire balance of the account in 20 years, and she expects to com a before tax rate ofretum of 44 percent on her retirement accounts and a 3.4 percent after-tax rate of return on all investments outside of her retirement accounts. For each of the following ahernative scenarios, indicate how much more or less Yold will accumulate after taxes in 20 years ishe converts her traditional TRA into a Roth IRA. Be sure to include the opportunity cost of having to paymes on the conversion (Use Totie 13 (Round your intermediate calculations and final answers to the nearest whole dollar amount) c. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 18 percent. Assume that she earns a 24 percentate tax rate of return on investments outside of the retirement accounts hng tn nh ti H P to vi | Acumulation she round Roth IRA accumulation the role over on RARA
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