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What Would Be the Difference in the Tax Consequences of an $18,000

Question 95

Multiple Choice

What would be the difference in the tax consequences of an $18,000 withdrawal from a Roth IRA versus a traditional IRA if $15,000 represents long-term capital gains, $2,000 is short-term capital gains, and $1,000 is interest? Assume a tax rate of 30% and a capital gains tax rate of 10%.


A) $5,200 more in taxes with a traditional IRA
B) $4,800 more in taxes with a traditional IRA
C) $5,400 more in taxes with a traditional IRA
D) $5,760 more in taxes with a Roth IRA

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