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Traditional 401(k) versus Roth 401(k) Simone has decided to contubute to a savings program. She can open a traditional 401(k) or a Roth 401(k) and

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Traditional 401(k) versus Roth 401(k) Simone has decided to contubute to a savings program. She can open a traditional 401(k) or a Roth 401(k) and has determined that she can afford a $12,000 contribution. Simone's salary is $58,500 per year, and she is in the 25% tax bracket. If Sumone decides to go with a traditional 401(k), her-contribution amount will be And the amount offset via a reduced tax bill will be 114 instead, Simone decides to go with a Roth 401(k), her contribution amount will be And the amount bffset via a reduced tax bill will be Assuming all the same facts, suppose that simone decodes to open both 401(k) plans, splitting what she can afford to contribute equally between both plans. Under this scenario, Simone's contribition amosint will be And the amoint oflset vis a reduced tax bill wis be When Simvene retires, which plan's moniew will she be able to exchude from taxable income

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