Taxes And Retirement Accounts Flashcards
1
Q
Unlimited contributions
A
Personal account
2
Q
Limited contributions 5,500
A
Traditional IRA
Roth IRA
3
Q
Taxes and retirement accounts
A
Personal account
Traditional IRA
Roth IRA
401(k) or 403(b)
4
Q
Personal account calculations
A
Step 1: ATTR=TR(1-investment tax rate)
Step 2: P(1+ATTR)^time
5
Q
Traditional IRA
A
Step 1: contribution X income tax rate
Step 2: ATTR= TR(1-tax rate)
P(1+ATTR)^time price=step 1
Step 3: P(1+TR)^time
Step 4: step 3 X (1- income tax rate at retirement)
Step 5: step 2 + step 4
6
Q
No tax deduction
A
Personal account
Roth IRA
7
Q
Roth IRA
A
Step 1: P(1+TR)^time
8
Q
401(k) or 403(b)
A
Same as traditional IRA
