Evaluate Tax-Efficient Retirement Strategies Practice Test

An individual taxpayer, age 33, has wages of $95,000 and contributes enough to her employer’s 401(k) to receive the full match. She has additional savings capacity and is deciding whether to increase 401(k) contributions or invest in a taxable account. She expects her retirement income to be similar to her current income. Considering tax-deferred growth and the taxation of qualified plan distributions, which retirement savings strategy would minimize the client's tax liability?

An individual taxpayer, age 62, recently retired and expects stable annual retirement income of $90,000. She has a traditional 401(k), a traditional individual retirement arrangement, and a Roth individual retirement arrangement, and she wants to minimize lifetime taxes while meeting annual cash-flow needs. Considering that distributions from traditional accounts are generally taxable as ordinary income and Roth qualified distributions are generally tax-free, what is the most tax-efficient withdrawal strategy?