User Account

All Pages

Annual tax obligation

Assignment Help Finance Basics
Reference no: EM131627492

1. For 20 years through age 66, you contribute $3,000 to your 401(k) plan and earn 6 percent annually. If you are in the 20 percent income tax bracket, what will be your annual tax obligation when you withdraw the funds for the next 15 years if your funds continue to earn 6 percent?

2. You are 60 years old. Currently, you have $10,000 invested in IRA and have just received a lump-sum distribution of $50,000 from a pension plan, which you roll over into an IRA. You continue to make $2,000 annual payments to the regular IRA and expect to earn 9 percent on these funds until you start withdrawing the money at age 70 (i.e. after 10 years). The IRA rollover will earn 9 percent for the same duration.

a. How much will you have when you start to make withdrawals at age 70?

b. If your funds continue to earn 9 percent annually and you withdraw $17,000 annually, how long will it take to exhaust your funds?

c. If your funds continue to earn 9 percent annually and your life expectancy is 18 years, what is the maximum you may withdraw each year?

Reference no: EM131627492

Questions Cloud

A description of the distribution channels : Place yourself in the role of a marketing executive in a hypothetical firm who is launching a new product that needs to be marketed.
What is meant by managing paradox and contradiction : What is meant by managing paradox and contradiction ?
How does principle of substitution affect analysis of supply : What role does demand and supply play in determining the value of real estate? What are demographics and psychographics, and how are they related to demand?
What was the capital gains yield : Compute the percentage total return. What was the dividend yield? What was the capital gains yield?
Annual tax obligation : If you are in the 20 percent income tax bracket, what will be your annual tax obligation when you withdraw the funds for the next 15 years.
State relevant facts concerning the issue : State relevant facts concerning the issue. Try to separate fact from opinion. Try not to show your own bias. Properly use APA citations.
Evaluate the usefulness of the different services : From the e-Activity, propose two (2) actions that these retailers can take in order to determine the effectiveness of their merchandise plans.
Explain the key features of the traditional deductible ira : Describe and compare the key features of each of the following types of individual retirement arrangements.
Discuss the main products imported and exported : Are they engaged in fair trade practices? Do they have any trading policies in place which help to facilitate or deter their trade transactions? Please explain.

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe how you would calculate the cost of common stock th

1. Describe how you would calculate the cost of common stock that you would use in the WACC formula. 2. How does the CAPM compare to the APT? 3. Is the CAPM a linear model? Please explain.

  The impact of banks and non-bank financial institutions

The impact of banks and non-bank financial institutions on economic growth

  Issues regarding the preparation of the budgets

Discuss the issues regarding the preparation of the budgets and why half of the departments liked the process and why the other half did not like the process. Complete the following:

  Compute the maturity risk premium

Key's Corporation's five year bonds yield 6.50% and five year T-bonds yield 4.40%. The real risk free rate is 2.5%, the default risk premium for Key's bond is DRP is 0.40%,

  Go to wwwvaluelinecom and look under the dow complimentary

go to www.valueline.com and look under the dow complimentary tab on the left. choose a stock and tell me whether you

  Provide lifetime income to annuitants

Although both fixed and variable annuities can provide lifetime income to annuitants, they differ in important ways. Compare and contrast (1) a fixed annuity with (2) a variable annuity with respect to each of the following:

  Under what circumstances will the irr and npv rules lead to

under what circumstances will the irr and npv rules lead to the same accept-reject decisions? when might they

  Calculate the payout ratio for each year

Calculate the payout ratio for each year on the basis of the regular $0.50 dividend and the cited EPS. Calculate the difference between the regular $0.50 dividend and a 25% payout for each year.

  What happens to the liquidity of the banking system

Suppose the Federal Reserve instructs the Trading Desk to purchase $1 billion of securities. Show the result of this transaction on the balance sheets of the Federal Reserve System and commercial banks. What happens to the liquidity of the banking..

  The seattle corporation has been presented with an

the seattle corporation has been presented with an investment opportunity which will yield end-of-year cash flows of

  What is the approximate internal rate of return

What is the approximate internal rate of return for the project

  Percent of the observations falling

Find the z-score from a standard normal distribution that satisfies each of the following statements.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd