A 25 year old taxpayer has $1,400 of after-tax income that she wishes to invest...
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A year old taxpayer has $ of aftertax income that she wishes to invest for years. She is trying to decide between a deductible IRA invested in corporate bonds and an aftertax investment in the same corporate bonds. Her tax rate is for the entire period and she will have to pay an additional tax penalty in total if she takes an IRA distribution before age The returns on the corporate bonds would be with either investment. She would invest the tax savings from the IRA into the IRA investment principal IRA principal nonIRA
What is the difference between the aftertax returns from the IRA versus the nonIRA AT return IRA AT return nonIRA
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