An IRA (Individual Retirement Account) allows taxpayers to invest money out of their personal income before taxes
Financial advisors will often tell their clients that they will realize more net pay (income after taxes) if they invest with an IRA versus saving their money in a simple savings account at a bank. Explain how this is so.
Suppose that you are in the 28% tax bracket. If you save $1000 per year in a savings account without tax protection you will see a $1000 drop in your net income. However, if you save $1000 through an IRA you will only experience a $720 drop in your net income. The reason for this is that the $1000 is not subject to taxation. Normally 28% of this $1000 of income would be withheld ($280).
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The distinction between physical and financial capital is that
A) physical capital is equal to financial capital minus depreciation. B) financial capital depreciates and physical capital does not. C) the value of financial capital depends on the amount of available physical capital. D) physical capital is equal to financial capital plus depreciation. E) financial capital is used to purchase and operate physical capital.
Lucy works as a college instructor for a fixed annual salary of $30,000. She is considering quitting this job and becoming a real estate broker
Lucy believes that as a realtor she has a 40 percent chance to make $60,000 per year and a 60 percent chance to make $25,000 a year. The figure above shows Lucy's total utility of wealth curve (U). Lucy will decide to ________ and she will definitely make this choice because it gives her a greater expected ________. A) keep her current job; income B) keep her current job; utility C) quit her job and become a realtor; utility D) quit her job and become a realtor; income
Explain how BOP disequilibrium is restored under
(a) flexible exchange rates. (b) fixed exchange rates, after you define what a BOP disequilibrium means.
The random error term ________ the effects of ________ influences on the dependent variable that are not included as explanatory variables
A) captures; observed B) ignores; unobserved C) ignores; observed D) captures; unobserved