1. If tax rates are changing over time, do pension accounts dominate tax-exempt savings accounts? 2. In analyzing the conversion decision in Equation 3.9, we assumed that any tax due on the conversion...

1. If tax rates are changing over time, do pension accounts dominate tax-exempt savings accounts?

2. In analyzing the conversion decision in Equation 3.9, we assumed that any tax due on the conversion would be paid in the year of the conversion. For 1998 only, the taxpayer could elect to spread the tax (more specifically, include equal portions of the conversion amount in taxable income) over 4 years. Under what conditions does this election not make sense?

3. In analyzing whether to contribute to a deductible IRA or a Roth IRA in Equation 3.6, we assumed a single lump-sum contribution (of $I). How would the choice change if the taxpayer were considering contributing $I every year from the current period to the last year before retirement?