Mrs. Kwan withdrew the entire $8,000 balance from her Roth IRA this year. Her total contributions to

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Mrs. Kwan withdrew the entire $8,000 balance from her Roth IRA this year. Her total contributions to the account were $6,070, and her marginal tax rate is 12 percent. Determine the tax cost of the withdrawal if:

a. Mrs. Kwan is age 63 and opened the Roth IRA three years ago.

b. Mrs. Kwan is age 63 and opened the Roth IRA seven years ago.

c. Mrs. Kwan is age 48 and opened the Roth IRA seven years ago.

Assume the taxable year is 2018.

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Principles Of Taxation For Business And Investment Planning 2019 Edition

ISBN: 9781260161472

22nd Edition

Authors: Sally Jones, Shelley C. Rhoades Catanach, Sandra R Callaghan

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Question Posted: Jan 18, 2019 05:14 AM

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Mrs. Kwan withdrew the entire $8,000 balance from her Roth IRA this year. Her total contributions to

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a The withdrawal is not a qualifying withdrawal becaus...View the full answer

Principles Of Taxation For Business And Investment Planning 2019 Edition

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