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Mathematics, 25.03.2020 23:04 golderhadashaowtatz
Kirby made contributions to a Roth IRA over the course of 35 working years. His contributions averaged $2,000 annually. Kirby was in the 26% tax bracket during his working years. The average annual rate of return on the account was 5%. Upon retirement, Kirby stopped working and making Roth IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Kirby dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Kirby's Roth IRA at retirement? Assume annual compounding.
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Kirby made contributions to a Roth IRA over the course of 35 working years. His contributions averag...
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