Schw Vol2, Ex2AM Ques 1 IPS and Taxes Ques?? investment, account, capital, needed, return

wilslm

In calculating the after tax nominal return for the coming year the answer key shows $116,438 needed from the portfolio. I converted the $116,438 into $152,250 to compensate for the 25% taxes that would be paid when withdrawing this from the investment portfolio.
Did they not tax the withdrawals from the investment account b/c it did not specifically state that withdrawals are taxed - only income and capital gains???