George $($age $42$ at year$-$end$)$ has been contributing to a traditional IRA for years $($all deductible contributions$)$ and his IRA is now worth $$25,000.$ He is planning on transferring $($or rolling over$)$ the entire balance into a Roth IRA account. George$$s marginal tax rate is $24$ percent.

a$.$ What are the tax consequences to George if he takes $$25,000$ out of the traditional IRA and puts the entire amount into a Roth IRA?

Tax Payable:$\_\_\_\_\_\_\_\_\_\_\_$

Penalty:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Total:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

b$.$ What are the tax consequences to George if he takes $$25,000$ out of the traditional IRA, pays the taxes due from the IRA distribution, and contributes the remaining distribution to the Roth IRA?

Tax Payable:$\_\_\_\_\_\_\_\_\_\_\_\_$

Penalty:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Total:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

c$.$ What are the tax consequences to George if he takes $$25,000$ out of the traditional IRA, keeps $$10,000$ to pay taxes and to make a down payment on a new car, and contributes the remaining distribution to the Roth IRA?

Tax Payable:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Penalty:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Total:$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$