Safari made contributions to a Traditional IRA over the course of 28 working years. Her contributions averaged $4,200 annually. Safari was in the 22% tax bracket during her working years. The average annual rate of return on the account was 8.5%. Upon retirement, Safari stopped working and making IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Safari dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Safari's Traditional IRA at retirement? Assume annual compounding.

Question

anonymous · Answer

$412,365.16
	$339,864.49
	$378,405.67
	$370,365.15