Tom is married and files a joint return. He has $75,000 in income in 2018. Tom (31 years old) and his non-working spouse (30 years old) both have just opened Traditional IRAs. Beginning in 2018, Tom contributes $5,500 to each of their Traditional IRAs (total of $11,000). The contributions are 100% deductible. He plans to make this same contribution each year for the next 30 years. During that time frame, Tom will target a 8% rate of return for both of the Traditional IRAs. If Tom and his wife are able to achieve this rate of return (and are able to contribute as planned), what will be the result?

Group of answer choices

They will have $1,246,115 that will be subject to RMD beginning at age 70 1/2.

They will have $1,246,115 available for tax-free withdrawals.

They will have $623,057 available for tax-free withdrawals

They will have $1,246,115 available for taxable withdrawals minus the Basis portion of the withdrawals.