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Question 20- Problem 13-81 (LO 13-4 ) (Static) The following information applies to the questions displayed below .] Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA now worth $50,000She is trying to decide whether she should convert her traditional IRA into a Roth IRA. Her current marginal tax rate is 24 percent. She plans to withdraw the entire balance of the account in 20 years, and she expects to earn a before-tax rate of return of 5 percent on her retirement accounts and a 4 percent after-tax rate of return on all investments outside of her retirement accounts. For each of the following alternative scenariosindicate how much more or less Yuki will accumulate after taxes in 20 years if she converts her traditional IRA into a Roth IRABe sure to include the opportunity cost of having to pay taxes on the conversion Note: Round your intermediate calculations and final answers to the nearest whole dollar amount Problem 13-81 Part b (Static ) b. When she withdraws the retirement funds in 20 yearsshe expects her marginal tax rate to be 18 percent. Answer is complete but not entirely corn Ask Jasper Accumulation if she keeps funds in traditional IRA 108,784 Accumulation if she converts traditional IRA into Roth IRA 128,516 Less accumulation if she conversion traditional IRA into Roth IRA2,975

Problem 13-81 (LO 13-4) (Static) [The following information applies to the questions displayed below.] Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $50,000. She is trying to decide whether she should convert her traditional IRA into a Roth IRA. Her current marginal tax rate is 24 percent. She plans to withdraw the entire balance of the account in 20 years, and she expects to earn a before-tax rate of return of 5 percent on her retirement accounts and a 4 percent after-tax rate of return on all investments outside of her retirement accounts. For each of the following alternative scenarios, indicate how much more or less Yuki will accumulate after taxes in 20 years if she converts her traditional IRA Into a Roth IRA. Be sure to include the opportunity cost of having to pay taxes on the conversion. Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Problem 13-81 Part b (Static) b. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 18 percent. Problem 13-81 (LO 13-4) (Static) [The following information applies to the questions displayed below.] Yuki (age 45 at year-end) has been contributing to a traditional IRA for years (all deductible contributions), and her IRA is now worth $50,000. She is trying to decide whether she should convert her traditional IRA into a Roth IRA. Her current marginal tax rate is 24 percent. She plans to withdraw the entire balance of the account in 20 years, and she expects to earn a before-tax rate of return of 5 percent on her retirement accounts and a 4 percent after-tax rate of return on all investments outside of her retirement accounts. For each of the following alternative scenarios, indicate how much more or less Yuki will accumulate after taxes in 20 years if she converts her traditional IRA Into a Roth IRA. Be sure to include the opportunity cost of having to pay taxes on the conversion. Note: Round your intermediate calculations and final answers to the nearest whole dollar amount. Problem 13-81 Part b (Static) b. When she withdraws the retirement funds in 20 years, she expects her marginal tax rate to be 18 percent

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