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Yuko ( age 4 5 at year - end ) has been contributing to a tradtiinal IRA for years ( all deductible contributions ) ,
Yuko age at yearend has been contributing to a tradtiinal IRA for years all deductible contributions and her IRA is now worth $ She is trying to decidebwhetherbshe should convert her traditional IRA into a Roth IRA Her current marginal tax rate is percent. She plans to withdraw the entire balance of the account in years and she expects to earn s before tax rate of return of percent on her retirement accounts and a 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 Yuko will accumulate after taxes in 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. B when she withdraws the retirement funds in years, she expectsbher marginalnrate to be percent.
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