Lisa, age 45. needed some cash so she withdrew $54,500 from her Roth IRA. At the...
Linda, age 55, needed some cash so she withdrew $60,000 from her Roth IRA. At the time of the distribution, the balance in the Roth IRA was $150,000. Lisa established the Roth IRA 10 years ago. Over the years, she has contributed $20,000 to her account. What amount of the distribution is taxable and subject to early distribution penalty? Select one: a. $40,000 is taxable and $40,000 is subject to the penalty b. $0 is taxable and $40,000 is subject...
Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,000 to the Roth IRA ($4,000 a year). The current value of the Roth IRA is $16,300. In the current year, Sherry withdraws $14,000 of the account balance to purchase a car. Assuming Sherry’s marginal tax rate is 24 percent, how much of the $14,000 withdrawal will she retain after taxes to fund her car purchase? Amount of withdrawal Non-taxable...
Help Save & Exit Subm Saved aron retired at the age of 63. The current balance in his Roth IRA is $140,000. Aaron established the Roth IRA eight years ago. Through a ollover and annual contributions, Aaron has contributed $70,000 to his account, If Aaron receives a $60,000 distribution from the Roth IRA, what amount of the distribution is taxable? Multiple Choice $0 $30,000 $60,000 None of the choices are correct Next> 8 of 10 <Prev 1855-723-6786 A& hp Course...
Matt is 42 years old and received a $19,000 distribution from his Roth IRA, established in 2009. At the time of the distribution, the Roth IRA account totaled totaled $27,850: $17,000 regular contributions, $8,000 taxable conversion contributions made in 2016, and $2,850 earnings. How much of his distribution is taxable and subject to the early distribution penalty? a) $0 taxable; $0 penalized. b) $0 taxable; $2,000 penalized. c) $0 taxable; $19,000 penalized. d) $2,000 taxable; $2,000 penalized.
In 2011, Pamelia invested $5,000 in a Roth IRA. In 2017, at age 60, Pamelia withdrew the entire balance, which then totaled $7,000 with the earnings that had accumulated over the years. What is the tax treatment of this distribution? The $7,000 is not included in income, but Pamelia must pay a 10% penalty on the entire distribution. O The $2,000 in earnings is included in income, and Pamelia is required to pay a 10% penalty on the entire distribution....
Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,000 to the Roth IRA ($4,000 a year). The current value of the Roth IRA is $16,300. In the current year, Sherry withdraws $14,000 of the account balance to purchase a car. Assuming Sherry’s marginal tax rate is 24 percent, how much of the $14,000 withdrawal will she retain after taxes to fund her car purchase?
Chapter 9 - Question 8 : Help me to explain this question. Thank you Jordan contributed $5,000 each year to her Roth IRA for eleven years. At age 57, Jordan’s IRA was worth $100,000 consisting of $55,000 in contributions, $25,000 in conversions from her 401(k) plan last year, and earnings of $20,000. What are the tax consequences if Jordan takes a complete distribution of the Roth IRA at age 57, once she has retired, to travel around the world? A....
$125,000 Question 41 of 50. Taran is 42 years old and received a $19,950 distribution from his Roth IRA, established in 2011. At the time of the distribution, the Roth IRA account totaled $33,748: $17,500 regular contributions, $11,000 taxable conversion contributions made in 2016, and $5,248 earnings. How much of his distribution is taxable and subject to the early distribution penalty? S0 taxable: $0 penalized. $0 taxable; $2,450 penalized. $0 taxable; $19,950 penalized. $2,450 taxable: $2,450 penalized. Intermediate Retirement Question...
1. Donald, age 65, withdraws $14500 for retirement from his Roth IRA this year. How much will he owe in taxes if his current marginal tax rate is 12% and his average tax rate is 9%? a. $1740 b. $0 c. $435 d. $1305 2. Nicole sold shares of Disney Company that were given to her 20 years ago by her grandmother to pay for her down-payment on her new home. She has a 22% marginal tax rate and a...
Keisha (50 years of age) is considering whether to participate in her company's Roth 401(k) or traditional 401(k). This year, she plans to invest either $4,000 in a Roth 401(k) or $5,000 in a traditional 401(k). Keisha plans on leaving the contribution in the retirement account for 20 years when she will receive a distribution of the entire balance in the account. Her employer does not have a matching program for employee contributions to retirement accounts. Assume Keisha can earn...