How Much Money Will Carlos Have After Withdrawing from His Roth IRA?

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AI Thread Summary
Carlos, aged 60, has $544,000 in his Roth IRA and is in the 32% tax bracket. When calculating the amount after taxes, the formula used was (1-tax bracket) x (amount), resulting in $369,920. However, this answer may be incorrect due to formatting issues, such as missing dollar signs or commas, or because the web program requires rounding to the nearest cent. It's important to ensure that the answer is presented in the correct format to meet the program's requirements. Proper formatting could be the key to resolving the discrepancy in the calculation.
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Homework Statement


Carlos is 60 years old, is in the 32% marginal tax bracket, and has $544,000 in his Roth IRA. How much money will he have after taxes if he withdraws all the money from the account?


Homework Equations


(1-tax bracket)x(amount)=earnings after income tax

The Attempt at a Solution


I did (1-.32)(544000)=369920, but I know that's not the right answer. What am I doing wrong?
 
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How do you know that's not the right answer?
 
Mark44 said:
How do you know that's not the right answer?

It's a homework problem on a web-based program that tells you whether or not you are right.
 
I hate those things! Assuming your formula is correct, your answer is completely correct. Perhaps the web based program is expecting the answer as "$369,920" and is counting it wrong because of either the missing "$" or the missing ",".
 
They could also be expecting an answer rounded to the nearest $0.01, not the nearest $1.
 

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