Mathematics, 19.10.2020 06:01 Mevans5602
Melissa made contributions to a Roth IRA over the course of 41 working years. Her contributions averaged $2,750 annually. Melissa was in the 26% tax bracket during her working years. The average annual rate of return on the account was 5.5%. Upon retirement, Melissa stopped working and making Roth IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Melissa dropped into the 10% tax bracket. Factoring in taxes, what is the effective value of Melissa's Roth IRA at retirement? Assume annual compounding.
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Melissa made contributions to a Roth IRA over the course of 41 working years. Her contributions aver...
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