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 24 percent.
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$22,440 She must pay $8,160 income taxes...View Answer
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