McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 31

Seven years ago, Halle (currently age 41) contributed $4,000 to a Roth IRA account.The current value of the Roth IRA is $9,000.In the current, year Halle withdraws $8,000 of the account balance to use as a down payment on her first home.Assuming Halle is in a 25 percent marginal tax bracket, how much of the $8,000 withdrawal will she retain after taxes to fund her house down payment?