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?

Question

anonymous · Answer

@sleepyjess @sleepyhead314 @dmndlife24 @danosaur13

anonymous · Answer

@Haseeb96 @just_one_last_goodbye @Jaynator495 @swaggd2 @TheAsker2002 @TheRaggedyDoctor @leonardo0430

anonymous · Answer

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.
$122,607.14
$173,536.23
$86,013.62
$99,246.49