determine the most advantageous retirement plan for each situation. drag each description to the correct…

determine the most advantageous retirement plan for each situation. drag each description to the correct location on the table. juan expects to be in a higher tax bracket upon retiring. sadie wants to have higher take - home pay during her working years. jerome wants to contribute to his plan with pretax dollars. alexis wants withdrawals during retirement to be tax exempt. traditional ira roth ira

determine the most advantageous retirement plan for each situation. drag each description to the correct location on the table. juan expects to be in a higher tax bracket upon retiring. sadie wants to have higher take - home pay during her working years. jerome wants to contribute to his plan with pretax dollars. alexis wants withdrawals during retirement to be tax exempt. traditional ira roth ira

Answer

Brief Explanations:

Traditional IRA contributions are pre - tax, which means lower take - home pay during working years but withdrawals are taxed. Roth IRA contributions are post - tax, resulting in higher take - home pay during working years and tax - exempt withdrawals. For someone expecting a higher tax bracket upon retiring (Juan), a Traditional IRA is better as they get the tax deduction now. For someone wanting higher take - home pay during working years (Sadie), a Roth IRA is better. For someone wanting to contribute with pre - tax dollars (Jerome), a Traditional IRA is better. For someone wanting tax - exempt withdrawals during retirement (Alexis), a Roth IRA is better.

Answer:

Traditional IRA: Juan, Jerome Roth IRA: Sadie, Alexis