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Kirsten withdrew $30,000 from a retirement account and used the money to furnish a new home. Kirsten's marginal tax rate is 24 percent. Required: Compute
Kirsten withdrew $30,000 from a retirement account and used the money to furnish a new home. Kirsten's marginal tax rate is 24 percent. Required: Compute the tax cost of the withdrawal in each of the following cases: a. Kirsten is 56 years old, and withdrew the money from a personal savings account. b. Kirsten is 56 years old, and withdrew the money from an employer-sponsored qualified plan upon retirement from the company Kirsten made no after-tax contributions to this plan. c. Kirsten is 56 years old, and withdrew the money from an employer-sponsored qualified plan. Kirsten intends to work for the employer for at least 10 more years. Kirsten made no after-tax contributions to this plan. d. Kirsten is 61 years old and withdrew the money from an employer-sponsored qualified plan. Kirsten intends to work for the employer for at least four more years. Kirsten made no after-tax contributions to this plan
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