Josephine G.

asked • 12/04/17

Traditional IRA ADVANCED ALGEBRA

Yon made contributions to a Traditional IRA over the course of 35 working years. Her contributions averaged $2,000 annually. Yon was in the 28% tax bracket during her working years. The average annual rate of return on the account was 6%. Upon retirement, Yon stopped working and making IRA contribution. 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.

1 Expert Answer

By:

Jeffrey K. answered • 09/17/20

Tutor
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