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George (age 42 at year-end) has been contibuting to a tradilional IRA for years (cll deductible contrbutions), and his IRA is now worth $25,000. Ho
George (age 42 at year-end) has been contibuting to a tradilional IRA for years (cll deductible contrbutions), and his IRA is now worth $25,000. Ho is planning on converting the entire balance to a Roth IRA account. Georgo's marginal tax rato is 24 percent. a. What are the tax consequences to George if he takes $25,000 out of the traditional IRA and contributes the entire amount into a Roth IRA one week after receiving the distribution? b. What are the tax consequences to George if he takes $25,000 out of the traditional IRA, pays the taxes due from the tralitional IRA distribution, and contributes the what's left from the distribution to the Roth IRA one week affer receiving the distribution? c. What are the tax consequences to George if he takes $25,000 out of the traditional RA, keeps $10,000 to pay taxes and to make a down payment on a new car, and contributes what's left from the distribution to the Roth IRA one week after receiving the distributions
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