1. Limited time only! Sign up for a free 30min personal tutor trial with Chegg Tutors
    Dismiss Notice
Dismiss Notice
Join Physics Forums Today!
The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

Homework Help: Roth IRA

  1. Dec 7, 2009 #1
    1. The problem statement, all variables and given/known data
    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?

    2. Relevant equations
    (1-tax bracket)x(amount)=earnings after income tax

    3. 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?
  2. jcsd
  3. Dec 7, 2009 #2


    Staff: Mentor

    How do you know that's not the right answer?
  4. Dec 7, 2009 #3
    It's a homework problem on a web-based program that tells you whether or not you are right.
  5. Dec 8, 2009 #4


    User Avatar
    Science Advisor

    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 ",".
  6. Dec 10, 2009 #5


    User Avatar
    Staff Emeritus
    Science Advisor
    Homework Helper

    They could also be expecting an answer rounded to the nearest $0.01, not the nearest $1.
Share this great discussion with others via Reddit, Google+, Twitter, or Facebook