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

Exercise 68

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