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

Exercise 24

In 2011, Rashaun (62 years old) retired and planned on immediately receiving distributions (making withdrawals) from his traditional IRA account.The current balance of his IRA account is $160,000.Over the years, Rashaun has contributed $40,000 to the IRA.Of his $40,000 contributions, $30,000 was nondeductible and $10,000 was deductible.
a.If Rashaun currently withdraws $20,000 from the IRA, how much tax will he be required to pay on the withdrawal if his marginal tax rate is 20 percent
b.If Rashaun currently withdraws $70,000 from the IRA, how much tax will he be required to pay on the withdrawal if his marginal tax rate is 30 percent