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You have $3,000 of after-tax income that you invest in a Roth IRA. The investment earns a 10% return and you will withdraw the money
You have $3,000 of after-tax income that you invest in a Roth IRA. The investment earns a 10% return and you will withdraw the money as a lump-sum in 30 years while in retirement (after age 59.5). Your current marginal tax rate is 30% and your marginal tax rate in retirement will be 20%. How much will be your after-tax withdrawal?
A. $52,348
B. $36,644
C. $15,000
D. $41,879
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