Business, 05.08.2020 02:01, dirtridersteve65

2. Roth retirement funds require you to pay taxes on your investment dollars up-front, while traditional IRAs allow you to pay taxes only when you withdraw your investment at age 59.5 or
older. What are the pros and cons of each option?
(10 points: 5 for at least one pro and 5 for at least con)

Answers: 3

Show answers

Answers

answered: cchave9563

The Pros and Cons of Roth IRA and the Traditional IRA or 401(K):

Roth IRA is not advantageous to those, who are starting to save late in their career. It favors the younger worker, who is starting out with low-paying jobs at lower-paying tax rates, who will later be earning more.

With Roth IRA, you suffer the tax burden upfront when you are active and while making your contributions, so that you can enjoy your retirement benefits tax-free. This is why the younger worker benefits more. In the prime of life with little responsibilities, you can settle the taxman so that you can be free of him later in older age. But, if you are in the high tax bracket, this category is not funny for you, anyway. The IRS has an income limit for this category, therefore, you must go for the traditional IRA.

The traditional IRA saves you the tax burden initially, but you can never be free of the IRS. It must take its share later, having allowed you to enjoy tax-free contributions. When the net is filled, the IRS cuts its percentage off.

You will never feel bad then, because your tax rate will surely be reduced in comparison with when you are making the contributions. So, it is just and right to allow the IRS, who generously helped you to grow the nest in the first place to take its just and lawful cut. It does not bleed too much then, afterall you are drying up with life's responsibilities, including reduced tax bracket, and many of your children have started answering to the IRS independently. This is the better time to deal with IRS, anyway.

Explanation:

The question has the explanation: ROTH IRAs are retirement funds that allow you to pay taxes on your investments into retirement funds as you are making the contributions, so that you are free to make your withdrawals after at least 5 years without paying additional taxes.

The traditional IRAs or the 401(K) encourage you to make your retirement contributions without paying taxes on them so that you can contribute more. Then the IRS will bounce on you to pay the taxes when you are making withdrawals having grown the investments.

IRAs mean Individual Retirement Accounts which individuals use to save and accumulate their retirement funds.

answered: Guest

It would be choice b (randomly selected)

answered: Guest

what is wrong with black soap shampoo?

explanation:

Other questions on the subject: Business

Business, 21.06.2019 20:30, saltyclamp

Max fischer is a beekeeper. his annual group insurance costs 11,700. his employer pays 60% of the cost. how much does max pay semimonthly for it?

Answers: 1

continue

Business, 22.06.2019 03:20, limelight11

Yael decides that she no longer enjoys her job, and she quits to open a gluten-free, dairy-free kosher bakery. she pays a monthly rent for her store of $2,000. her labor costs for one month are $4,500, and she spends $6,000 a month on nut flours, sugar, and other supplies. yael was earning $2,500 a month working as a bank teller. these are her only costs. her monthly revenue is $14,000. which of the following statements about yael’s costs and profit are correct? correct answer(s) an accountant would say she is earning a monthly profit of $1,500. her implicit costs are $2,500 a month. an economist would tell her that she is experiencing a loss. her total costs are $12,500 a month. her explicit costs include the labor, rent, and supplies for her store. her economic profit is $1,500 a month.

Answers: 3

continue

Business, 22.06.2019 03:30, jonathanLV6231

Eagle sporting goods reported the following data at july â€‹31, 2016â€‹, with amounts adapted inâ€‹ thousands: â€‹(click the icon to view the incomeâ€‹ statement.) â€‹(click the icon to view the statement of retainedâ€‹ earnings.) â€‹(click the icon to view the balanceâ€‹ sheet.) 1. compute eagleâ€‹'s net working capital. 2. compute eagleâ€‹'s current ratio. round to two decimal places. 3. compute eagleâ€‹'s debt ratio. round to two decimal places. do these values and ratios lookâ€‹ strong, weak orâ€‹ middle-of-the-road? 1. compute eagleâ€‹'s net working capital. total current assets - total current liabilities = net working capital 99400 - 30000 = 69400 2. compute eagleâ€‹'s current ratio. â€‹(round answer to two decimalâ€‹ places.) total current assets / total current liabilities = current ratio 99400 / 30000 = 3.31 3. compute eagleâ€‹'s debt ratio. â€‹(round answer to two decimalâ€‹ places.) total liabilities / total assets = debt ratio 65000 / 130000 = 0.50 do these ratio values and ratios lookâ€‹ strong, weak orâ€‹ middle-of-the-road? net working capital is â–ľ . this means â–ľ current assets exceed current liabilities current liabilities exceed current assets and is a â–ľ negative positive sign. eagleâ€‹'s current ratio is considered â–ľ middle-of-the-road. strong. weak. eagleâ€‹'s debt ratio is considered â–ľ middle-of-the-road. strong. weak. choose from any list or enter any number in the input fields and then continue to the next question.

Answers: 3

continue

Business, 22.06.2019 10:00, ladnerhailey16

You are president of a large corporation. at a typical monthly meeting, each of your vice presidents gives standard area reports. in the past, these reports have been good, and the vps seem satisfied about their work. based on situational approach to leadership, which leadership style should you exhibit at the next meeting?

Answers: 2

continue

Do you know the correct answer?

2. Roth retirement funds require you to pay taxes on your investment dollars up-front, while tradit...