Tax-deferred and tax-exempt accounts provides no up-front tax benefit but allows contributions and earnings to be withdrawn tax free during retirement
When deciding which sort of retirement account best suits your financial objectives, tax planning is a crucial consideration. Accounts that are tax-deferred and tax-exempt may enable you to pay as little tax as possible. Although the tax treatment of both retirement accounts varies, each can help you keep more of your money over the course of your lifetime.
You can take immediate tax deductions up to the full amount of your contribution in tax-deferred accounts. The money in your account continues to grow after that, tax-free. Your regular income tax rate will apply to any future withdrawals from the account.
Instead of offering tax reductions on donations, tax-exempt accounts offer future tax benefits. Taxes are not applied to retirement withdrawals. There is no immediate tax benefit because contributions are made with after-tax money, which means you fund the account with money you've already paid taxes on.
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Answer:
The answer is 17.67 years.
Explanation:
Present value is $2,500
Future value of the money to be double of the present value. This means the future value will be $5,000($2,500 x 2)
Interest rate is 4%
Number of years or periods to reach this $5,000 is unknown. So we are looking for this.
To compute this number of periods, lets use Financial calculator.
I/Y = 4; PV= -2,500; FV= 5,000; CPT N= 17.67 years.
Therefore, the number of years to accumulate to $5,000 is 17.67 years
Answer:
4.97 %
Explanation:
Data and Calculation :
PV = - $2,262.00
N = 11.00
FV = $3,855.00
P/YR = 1
PMT = $0
I/YR = ? 4.97 %
THUS,
The account earned 4.97 % per year.
Answer:
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Answer:
c. $50,000
Explanation:
The investing activities of cash flow deals with the actual cash received/paid by the entity/corporation from the investing activities. Since in the given question, the actual cash received by the entity from the sale of lands amounts to $50,000, therefore the $50,000 shall be included in the investing activity section of the Cash flows from the sale of land and accordingly the answer shall be c. $50,000