Business, 21.12.2019 07:31 meganldale15

Jenny (35 years old) is considering making a one-time contribution to either a traditional 401(k) plan or to a roth 401(k) plan. she plans to withdraw the account balance when she retires in 40 years. jenny expects to earn a 7% before-tax rate of return no matter which plan she contributes to.
which of the following statements is true?

a. if jenny's marginal tax rate in the year of contribution is higher than her marginal tax rate in the year of distribution, she will earn a higher after-tax rate of return on the traditional 401(k) plan than on the roth 401(k) plan.
b. if jenny's marginal tax rate in the year of contribution is lower than her marginal tax rate in the year of distribution, she will earn a higher after-tax rate of return on the traditional 401(k) plan than on the roth 401(k) plan.
c. jenny will earn the same after-tax rate of return no matter which plan she contributes to.
d. jenny is not allowed to make a one-time contribution to either plan.

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 16:30

Suppose that electricity producers create a negative externality equal to $5 per unit. further suppose that the government imposes a $5 per-unit tax on the producers. what is the relationship between the after-tax equilibrium quantity and the socially optimal quantity of electricity to be produced?

Answers: 2

Answer

Business, 22.06.2019 20:30

What could cause a production possibilities curve to move down and to the left? a.) a nation loses land after being defeated in a war. b.) an increase in the use of computer technology speeds up production c.) a baby boom 20 years ago results in a large number of young adults in the population today. d.) thousands of investors from overseas invest money in a nations economy.

Answers: 1

Answer

Business, 22.06.2019 21:10

In transportation model analysis, the stepping-stone method is used to: a. obtain an initial feasible solutionb. evaluate empty cells for possible degeneracyc. evaluate empty cells for potential solution improvementsd. identify a dummy origin pointe. balance supply and demand

Answers: 1

Answer

Business, 23.06.2019 02:50

Which of the following will be a source of cash flows for a shareholder of a certain stock? i. sale of the shares at a future date ii. the firm in which the shares are held paying out cash to shareholders in the form of dividends iii. the firm in which the shares are held increasing the total number of shares outstanding through a stock split

Answers: 2

Answer

You know the right answer?

Jenny (35 years old) is considering making a one-time contribution to either a traditional 401(k) pl...

Questions