Ashley made contributions to a Roth IRA over the course of 29 working years. His contributions averaged $1,700 annually. Ashley was in the 29% tax bracket during his working years. The average annual rate of return on the account was 7%. Upon retirement, Ashley stopped working and making Roth IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Ashley dropped into the 20% tax bracket. Factoring in taxes, what is the effective value of Ashley’s Roth IRA at retirement? Assume annual compounding. (1 point)

Question

Ashley made contributions to a Roth IRA over the course of 29 working years. His contributions averaged $1,700 annually. Ashley was in the 29% tax bracket during his working years. The average annual rate of return on the account was 7%. Upon retirement, Ashley stopped working and making Roth IRA contributions. Instead, he started living on withdrawals from the retirement account. At this point, Ashley dropped into the 20% tax bracket. Factoring in taxes, what is the effective value of Ashley’s Roth IRA at retirement? Assume annual compounding.  (1 point)

anonymous · Answer

@BacardiDavis  could you try to help me please?