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Roth IRA Ver.sus Deductible IRA. Harry wants to contribute
either $6,000 (BT$) ro a traditional deductible IRA or $6,000 (AT$) ro a Roth
IRA. His current tax rate is 30% for ordinary income and 15% for capita l
gains. He expects his IRA investment to earn a 12 % BTROR, and he plans to
withdraw the IRA accumulation in 25 years, at which rime he will be over age
59½. If he contributes to a deductible IRA, he will invest the tax savings from
the deduction in a nondividend paying stock chat he expects to grow at a 12%
BTROR. Harry will sell the stock at the same rime he withdraws the IRA
accumulation.
a. Compare the two alternatives assuming that, at the time
of withdrawal, Harry’s tax rare will be 30% for ordinary income and 15% for
capital gains.
b. Compare the two alternatives assuming that, at the time
of withdrawal, Harry ‘s tax rare will be 15% for ordinary income and 0% for
capital gains.

Multiperiod Investment Strategy. Given the following facts
and assumptions, determine what investment strategy Karen should follow ro
maximize accumulations and how much she will have accumu lated at the beginning
of Year 10 (including her last paycheck).
• Karen’s ordinary tax rare is 25%, and her long-term
capital gains tax rate is 15% . These rates will remain constant over her
investment horizon.
• Karen earns $50,000 per year, which she receives on the
first day of each year.
• Karen saves all her income after paying income taxes on
her earnings. Taxes are payable immediately upon receiving her paycheck.
• At the beginning of each year, Karen can invest her savings
in any of three vehicles:
1. A money market fund yielding 6% per year before taxes,
2. A traditional deductible IRA chat yields 6% per year
before taxes, and/or
3. Capital assets chat grow at 5.21 % per year before taxes.
• IRA contributions are limited to $6,000 per year and are
deductible up to that amount. Assume this limit app lies to all years under
consideration.
• At the beginning of Year 10, Karen saves no more income.
Instead, she withdraws any IRA and/or money market accumu lations and sells her
capital assets for their accumulated FMV before taxes. She also receives a
$50,000 paycheck at the beginning of Year 10.
• IRA accumulations are taxable immediately upon withdrawal
with no additional penalty.
• Ignore itemized deductions, standard deductions,
exemptions, etc.

Pass-Through Versus C Corporation . Twelve years ago, your
client formed a C corporation with a $100,000 investment (contribution). The
corporation’s BTROR (Re) has been and will continue to be 10%. The corporate
tax rare (re) has been 35% for the last 12 years, but because of a tax law
change, the corporation’s tax rate will be 21 % for the foreseeable future. The
corporation pays no dividends and reinvests all after-tax earnings in its
business. Thus, the corporation’s value grows at its ATROR. Your client’s
marginal ordinary tax rare (tp) has been 33%, and her capital gains rate has
been 15%. Because of the same tax law cliange, your client’s ordinary tax rare
dropped to 24% at the beginning of this year and will stay at that level
indefinitely. Her capita l gains tax rate will remain at 15%. Assume the
corporate stock does not qualify for the Sec. 1202 exclusion for gain on the
sale of small business stock. Your client wants you to consider three
alternatives:
1. Continue the business in C corporation form for the next
20 years and liquidate at that time (32 years in total).
2. Liquidate the C corporation at the end of the 12-year
period, invest the after-tax proceeds in a sole proprietorship, and operate as
a sole proprietorship for the next 20 years. Your client will claim the 20% QBI
deduction in the sole proprietorship case.
3. Make an S corporation election effective at the beginning
of this year, operate as an S corporation for the next 20 years, and liquidate
the S corporation at that time (32 years in coral). Your client will claim the
20% QBI deduction in the S corporation case.
Regarding Alternatives 2 and 3, the sole proprietorship ‘s
or S corporation’s BTROR (Rp) also will be 10% for the next 20 years. Earnings
from the sole proprietorship or S corporation will be taxed currently at your
client’s ordinary tax rate (adjusted for the QBI deduction percentage), and
your client will withdraw just enough from the business to pay her taxes. The
remaining after-tax earnings will remain in the business until the end of the investment
horizon (20 years from now ). Show the results of each alternative along with
supporting models and calculations. Which alternative should your client adopt?
Ignore the accumulated earnings tax for C corporations.

What are ways that we teach and learn gender? How do institutions maintain/support gender norms?
• What are some of the consequences of challenging constructions of gender? Use examples from “X: A Fabulous Child’s Story / The Story of X” and “One Bad Hair Day Too Many.”
• Do you think contemporary notions of masculinity are or are not changing? Gives examples from your experiences.

Respond to the following in a minimum of 175 words:
How do you think the projected changes in corrections will influence your decision into choosing corrections as a career?