Mathematics, 27.05.2020 22:07 he0gaubong
Leon started making contributions to a Traditional IRA when he got his first job, at age 36. His contributions averaged $1,900 annually. Leon was in the 35% tax bracket during his working years, when he continued to make these annual contributions. The average annual rate of return on the account was 6.1%. Upon retirement at age 64, Leon stopped working and making IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Leon dropped into the 25% tax bracket. Factoring in taxes, what is the effective value of Leon's Traditional IRA at retirement? Assume annual compounding.
Answers: 2
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