Yon made contributions to a Traditional IRA over the course of 25 working years. Her contributions averaged $3,000 annually. Yon was in the 26% tax bracket during her working years. The average annual rate of return on the account was 4%. Upon retirement, Yon stopped working and making IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Yon dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Yon’s Traditional IRA at retirement? Assume annual compounding.
$106,197.06
$92,453.91
$169,947.06
$111,194.57
3 answers
Already figured it out, thanks, even though you're wrong.
How do you solve it?
sorry I'm late, but it was A. $106,197.06
1 answer