The writer is very fast, professional and responded to the review request fast also. Thank you.
Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $48,000. She is trying to decide whether she should roll over her traditional IRA into a Roth IRA. Her current marginal tax rate is 25 percent. She plans to withdraw the entire balance of the account in 20 years and she expects to earn a before-tax rate of return of 5.8 percent on her retirement accounts and a 4.8 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 Yuki will accumulate after taxes in 20 years if she rolls over her traditional IRA into a Roth IRA. Be sure to include the opportunity cost of having to pay taxes on the rollover.
a.When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 35 percent.
Accumulation if she keeps funds in traditional IRA____
Accumulation if she rolls funds into Roth IRA____
(Greater/:lesser) accumulation if she rolls over traditional IRA to Roth IRA____
b. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 20 percent.
Accumulation if she keeps funds in traditional IRA____
Accumulation if she rolls funds into Roth IRA____
(Greater/:lesser) accumulation if she rolls over traditional IRA to Roth IRA____
c.Assume the same facts as in part (b), except that she earns a 3.8 percent after-tax rate of return on investments outside of the retirement accounts.
Accumulation if she keeps funds in traditional IRA____
Accumulation if she rolls funds into Roth IRA____
(Greater/:lesser) accumulation if she rolls over traditional IRA to Roth IRA____
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more