Essay
Cassandra, age 33, has made deductible contributions to her traditional IRA over the years. When the balance in her IRA was $40,000, Cassandra received a distribution of $34,000 from her IRA in order to purchase a new car. How much of the $34,000 distribution will she have remaining after paying income taxes and early distribution penalties on the distribution? Her marginal tax rate is 25 percent.
Correct Answer:
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$22,100
She must pay $8,500 income taxes...View Answer
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Correct Answer:
Verified
She must pay $8,500 income taxes...
View Answer
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Get Access to more Verified Answers free of charge
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