How much will fred have after taxes when the money

Assignment Help Financial Accounting

Reference no: EM133433633

Question: Fred deposited $5,000 into a Roth IRA this year. He expects his account will earn an average annual rate of 6.75%, and he plans to withdraw the money in 21 years. His current income tax rate is 35%, but he anticipates that his income tax rate will be 25% when he withdraws the money. How much will Fred have after taxes when the money is withdrawn?

Reference no: EM133433633

Questions Cloud

What are goods and services tax implications for business : What are the goods and services tax (GST) implications for the business? Write your answer in 70 to 120 words.

Explain the skills you would use as a human services : Explain whether it would keep you from trying to address the issue and why. Finally, explain the skills you would use as a human services practitioner to addres

Compare and contrast the understanding of leadership inside : Compare and contrast the understanding of leadership inside and outside of the military. Provide an example to illustrate at least one contrasting assertion.

Describes three types of staffing strategy : Describes three types of staffing strategy (Expatriates, Host-Country Nationals, Third-Country Nationals) and each strategy's advantages and disadvantages

How much will fred have after taxes when the money : he anticipates that his income tax rate will be 25% when he withdraws the money. How much will Fred have after taxes when the money is withdrawn

Why to eliminate bonuses and pay employees their full salary : To develop a new strategy, cultivate a business model and generate a strong internal culture should HCL Technologies continue to promote its "Employee First

Prepare the journal entry to record the share repurchase : Prepare the journal entry to record the share repurchase transaction and Why do you think the Company decided to repurchase the shares? State all the reasons

How to use the internet to monitor stock prices : How might you assess the benefits of a training program designed to teach employees how to use the Internet to monitor stock prices?

Identify where the actors in this situation are located on : Identify where the actors in this situation are located on the organizational chart. You may need to make some guesses here and that's okay--simply explain why

User Account

All Pages