Tax-deferred and tax-exempt accounts provides no up-front tax benefit but allows contributions and earnings to be withdrawn tax free during retirement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:
A. None of these.
Explanation:
Perry's capital gains taxes = $25,000 - $10,000 = %15,000 x 15%
both investments were held for periods longer than 1 year
Addition to Perry's ordinary income = $4,000 x 32%
since Perry only owned the investment for 8 months it is considered short term gain
Answer:
C.Principal
The amount of the loan is called the principal, and the extra amount they charge you to borrow the money is called interest.
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<u>Given:</u>
Cost of books sold up-to-date = $141.002
Sales quota = $194.159
Expectation = $15.005
<u>To find:</u>
Sales to be done at Munroe college if the expected sales has been accomplished.
<u>Solution:</u>
To calculate the sales to be done we have to subtract the cost of books sold up-to-date and expectation from the sales quota. That is,
Therefore, the sales to be done at Munroe college is $38.152.