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Required information (The following information applies to the questions displayed below) Yuki (age 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 (age 45 at year-end has been contributing to a traditional IRA for years (all deductible contributions, and her IRAIS 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 a investments outside of her retirement accounts. For each of the following alternative scenarios, indicate how much more or less Yuki will accumulate after we in 20 years 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.) a. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 35 percent. 85.232 Accumulon she keepends in traditional RA Acoustion the roles funds to Rom RA Groer como hero over traditional IRA Roth IRA 16 17 18 of 18 Next > 26 1,067 W * W E R Y S D F G H
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