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

[bap902]

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?

 

[Mark44]

How do you know that's not the right answer?

 

[bap902]

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.

 

[HallsofIvy]

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 ",".

 

[Redbelly98]

They could also be expecting an answer rounded to the nearest $0.01, not the nearest $1.