engleski

Reconsideration of the Traditional versus Roth IRA Decision

Embedded options arise in many tax-related decisions because of the ability to subsequently alter one's choices in response to changing conditions. This article analyzes one type of embedded option that is especially amenable to being modeled and that is of widespread interest: the decision to contribute to a traditional or Roth IRA, where the embedded option is associated (i.e., a traditional IRA contribution) might be incorrectly rejected when the option is ignored.

Embedded options; individual retirement accounts

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