if 2M are needed from the TDA account at retirement but withdrawals are taxed, why is the FV not 2M/(1-t)?
is it because the 2M does not count as a withdrawal?作者: mar350 时间: 2011-7-13 16:13
It says pre-tax contribution of 3MM. The assumption being she simply changed the TDA into the annuity.作者: NakedPuts2011 时间: 2011-7-13 16:13
jmac01 Wrote:
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> dont they need 2M pretax? dont remember fullly.
Yes, but I believe she was getting 1MM from an employee retirement plan. It was 3MM - 1MM.作者: Colum 时间: 2011-7-13 16:13
Pretty sure the question stated they needed 3M pretax to meet their goal. 3MM - 1MM from work = 2MM作者: Analti_Calte 时间: 2011-7-13 16:13
LobsterBoy Wrote:
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> Which question # is this?
Was number 1, wasn't it?
She was buying the life annuity. Return requirement was 7.05% if memory serves me correct.作者: cityboy 时间: 2011-7-13 16:13
Paraguay Wrote:
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> It says pre-tax contribution of 3MM. The
> assumption being she simply changed the TDA into
> the annuity.
ahh ok that is the key then right? she needs 3M, is getting 1M from elsewhere, so she is "converting" the TDA to the annuity....and this does not count as a withdrawal...2M goes from TDA to annuity作者: Valores 时间: 2011-7-13 16:13
