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Required information The following information applies to the questions displayed below Yuki foge 45 at year and has been contributing to a traditional RA for
Required information The following information applies to the questions displayed below Yuki foge 45 at year and has been contributing to a traditional RA for years fa deductible contributions)and be IRAS 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 earn a before tax rate of return 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 alternative scenarios, indicate how much more or less Yuki will accumulate after taxes in 20 years if she converts her traditional IRA into a Roth IRA Be sure to include the opportunity cost of having to pay taxes on the conversion (Use Table 1) Round your intermediate calculations and final answers to the nearest whole dollar amount) b. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 18 percent 16.232 Accumulation shounds in traditional IRA Abounction she rounds into Roth IRA nomation hero over traditional IRA into Rom RA 1067 26 W go NO W E 0 S D G Required information The following information applies to the questions displayed below Yuki foge 45 at year and has been contributing to a traditional RA for years fa deductible contributions)and be IRAS 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 earn a before tax rate of return 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 alternative scenarios, indicate how much more or less Yuki will accumulate after taxes in 20 years if she converts her traditional IRA into a Roth IRA Be sure to include the opportunity cost of having to pay taxes on the conversion (Use Table 1) Round your intermediate calculations and final answers to the nearest whole dollar amount) b. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 18 percent 16.232 Accumulation shounds in traditional IRA Abounction she rounds into Roth IRA nomation hero over traditional IRA into Rom RA 1067 26 W go NO W E 0 S D G
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