Mathematics, 20.04.2020 05:20 Dallas3506
Kevin made contributions to a Roth IRA over the course of 40 working years. His contributions averaged $3,000 annually. Kevin was in the 25% tax bracket during his working years. The average annual rate of return on the account was 7%. Upon retirement, Kevin stopped working and making Roth IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Kevin dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Kevin's Roth IRA at retirement? Assume annual compounding.
$449,179.01
$568,905.34
$580,905.34
$586,905.34
Answers: 2
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Kevin made contributions to a Roth IRA over the course of 40 working years. His contributions averag...
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