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Answers to a., b., and c. please, thank you! Chatham Mae is single, age 35 , and wants to make a contribution to an IRA
Answers to a., b., and c. please, thank you!
Chatham Mae is single, age 35 , and wants to make a contribution to an IRA for the year ended December 31,2022 . She is an active participant in a qualified retirement plan sponsored by her employer. Her AGI for 2022 is $135,000 before considering any IRA contribution. Requirement a. What type of IRA, if any, is Chatham Mae eligible to make a contribution to for 2022? If she is eligible to contribute to an IRA, what is the maximum amount that she can contribute to the IRA? (Complete all input fields. Enter a "0" for any zero amounts. Do not round intermediary calculations. Only round the amount you enter in the input field to the nearest whole dollar.) For 2022 Chatham Mae is eligible to make a \$ a $ contribution to a Roth IRA and a \$ if Chatham Mae traditional IRA. deductible contribution to a traditional IRA. She is eligible to make nondeductible contribution to a traditional IRA. Alternatively, , she can contribute $ to a nondeductible Requirements a. What type of IRA, if any, is Chatham Mae eligible to make a contribution to for 2022 ? If she is eligible to contribute to an IRA, what is the maximum amount that she can contribute to the IRA? b. Assume Chatham Mae contributes a total of $12,000 over six years to a Roth IRA. In 2028 , she withdraws $15,000 to pay off her car loan. Her financial advisor suggested she withdraw the money from the IRA for two major reasons: (1) to eliminate her debt and (2) no tax would be due on distributions from a Roth IRA after five years. Chatham Mae wants to verify the accuracy of her advisor's advice. What would be the tax consequences of this withdrawal? Alternatively, what if Chatham Mae withdrew the $15,000 to purchase a house (she is a first-time homebuyer)? c. Alternatively to Part b above, assume Chatham Mae has a traditional deductible IRA that has a balance of $50,000. She has been able to deduct all of her contributions to the IRA in prior years. Her financial advisor has recommended that she rollover the funds from her traditional IRA to a Roth IRA in 2022. What are theStep by Step Solution
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