Pam and Jim have been happily married for 30 years and have…

Pam and Jim have been happily married for 30 years and have been successful as partners in a family scrapbooking company.  Now they are ready to retire, and their residual income will put them in the 35% marginal tax bracket. Thankfully they made a wise investing decision in the lean, early years when their tax rate was only 10%. Now they will save greatly on their tax liability.  What type of investment account will allow them to make tax-free withdrawals?

Use this information to complete the quiz. Tax Formula Gross…

Use this information to complete the quiz. Tax Formula Gross Income– Adjustments (from AGI)Adjusted Gross Income (1)– Deductions (from-AGI) Taxable Income (2)x Tax Rate(s) Tax Liability (3)– Tax Credits Taxes Due/(Refund) (4) 2018 Federal Income Tax Brackets (10%–24%) Marginal Tax Rate Taxable Income (over x but less than y) Single Taxable Income (over x but less than y) Married Filing Jointly 10% $0 / $9,525 $0 / $19,050 12% $9,526 / $38,700 $19,051 / $77,400 22% $38,701 / $82,500 $77,401 / $165,000 24% $82,501 / $157,500 $165,001 / $315,000 Standard Deduction $12,000 $24,000