Answered step by step
Verified Expert Solution
Question
1 Approved Answer
In 2021, Rashaun (62 years old) retired and planned on Immediately receiving distributions (making withdrawals) from his traditional IRA account. The balance of his IRA
In 2021, Rashaun (62 years old) retired and planned on Immediately receiving distributions (making withdrawals) from his traditional IRA account. The balance of his IRA account is $180,000 (before reducing it for withdrawals/distributions described below). Over the years, Rashaun has contributed $49,780 to the IRA. Of his $49,780 contributions, $35,280 was nondeductible and $14,500 was deductible. Assume Rashaun did not make any contributions to the account during 2021. (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) 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 24 percent? Amount of Withdrawal Ratio of nondeductible contributions: 0 % Non-taxable S 0 Taxable Tax Rate Tax 09 0 In 2021, Rashaun (62 years old) retired and planned on Immediately receiving distributions (making withdrawals) from his traditional IRA account. The balance of his IRA account is $180,000 (before reducing it for withdrawals/distributions described below). Over the years, Rashaun has contributed $49,780 to the IRA. Of his $49,780 contributions, $35,280 was nondeductible and $14,500 was deductible. Assume Rashaun did not make any contributions to the account during 2021. (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar amount.) 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 28 percent? Amount Withdrawal Ratio of nondeductible contributions: 0 % Non-taxable S 0 Taxable Tax Rate % Tax S 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started