You will earn money each year off your tax-deferred retirement accounts without having to pay taxes until the funds are withdrawn. True O False
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- What is the main benefit of investing in a 401k, IRA, or other retirement account? Multiple Choice The earnings grow without being taxed yearly. The employer matches the employee’s contributions. The employee receives additional tax deductions yearly. The earnings are tax free once withdrawn. These accounts always end up being worth more than the initial contributions.Suppose you are in the 35% tax bracket (because you make $210,000) and have $6000 to put into a retirement account. How much tax do you pay on the $6000 this year if you put the money into a Traditional IRA? $When taxpayer receive distribution from qualified retirement plans, how many time is allowed to roll over the amount received into a new plan to avoid paying taxes on the distribution in the current year, assuming there are no unusual events? 60 days 1 year 180 days d 90 day There is no time limit
- You estimate you need to supplement your social security payments with monthly withdrawals of $3,420.00 per month from a private investment account during the first 24 years of your retirement. Assuming you can earn annual returns of 6.9% in your investment account during your retirement years, how much money do you need to have accumulated in your investment account by the day you retire in order to fund the aforementioned monthly withdrawals?Russell and Charmin have current living expenses of $66,260 a year. Estimate the present value amount of income they will need to maintain their level of living in retirement. Assume an average tax rate of 11 percent and a(n) 74 percent income replacement ratio. The estimated present value amount of income they will need to maintain their level of living in retirement is?Ophria invested well and plans to retire now because she has $2,300,000 in hre tax-deferred IRA account. How long will she be able to withdraw $125,000 per year (beginning one year from now) if her investments earn at a rate of 4% per year? solve using factors and NPER functions.
- If Sarah invests in the normal savings account, her net value (after taxes) five years from now will be: $?Self-employed persons can make contributions for their retirement into a special tax-deferred account called a Keogh account. Suppose you are able to contribute $20,000 into this account at the end of each year. How much will you have at the end of 30 years if the account pays 2% annual interest? (Round your answer to the nearest cent.)$If she starts making deposit amounts in one year and her deposits increase at the inflation rate of 3% each year until she makes her last deposit on the day she retires, what amount must she initially deposit to be able to make the desired withdrawals at retirement?
- 2. Use the the marginal tax information in the table below to calculate the annual after tax income Greg should expect in his retirement. Greg expects $11201 annually from CPP, $6467 annually from OAS, and $99,000 from his RRIF. Assume that his OAS will be clawed back on any income above $76,000.Imagine your uncle is currently earning $200,000 pa and is about to retire. What percent of his current income will Social Security pay?Ophria invested well and plans to retire now because she has $2,300,000 in hre tax-deferred IRA account. How long will she be able to withdraw $125,000 per year (beginning one year from now) if her investments earn at a rate of 4% per year? solve using factors and NPER functions, without Excel.