Question

Melanie made contributions to a Roth IRA over the course of 34 working years. Her contributions averaged $3,750 annually. Melanie was in the 31% tax bracket during her working years. The average annual rate of return on the account was 6.5%. Upon retirement, Melanie stopped working and making Roth IRA contributions. Instead, she started living on withdrawals from the retirement account. At this point, Melanie dropped into the 15% tax bracket. Factoring in taxes, what is the effective value of Melanie’s Roth IRA at retirement? Assume annual compounding.

Answer 1

@Capnkookcx

Answer 2

@ChubbyBunny97

Answer 3

Why tag me? I can't do math

Answer 4

@I_love_my_nieces

Answer 5

@VolcoffSage