QuestionAn employee in the $12 \%$ tax bracket invests $\$ 2000.00$ in a Roth IRA. When the employee retires, her salary is in the $22 \%$ tax bracket. What tax will be assessed on the initial investment when it opens? A. Not enough information to answer B. $\$ 240.00$ C. $\$ 440.00$ D. Since the employee used a Traditional IRA, she will pay no taxes on her investment when it opens.

Studdy Solution
Evaluate the provided options based on the understanding that a Roth IRA contribution is made with after-tax dollars and no additional tax is assessed on the initial investment when the account is opened.
$$\text{The answer is: Since the employee used a Roth IRA, she will pay no taxes on her investment when it opens.}$$
$\boxed{D}$