Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Mark for follow up Question 41 of 75. Stephania Rizzuto borrowed $21,000 from her employer's plan. When she left her employer in May 2021,
Mark for follow up Question 41 of 75. Stephania Rizzuto borrowed $21,000 from her employer's plan. When she left her employer in May 2021, the loan had an outstanding balance of $7,000. Without regard to the loan, her account had a balance of $42,000. She requested a total distribution from the plan. The amount was to be directly deposited to her checking account. She received the Form 1099-R shown below, reporting her distribution. What amount was directly deposited to Stephania's checking account when she received the total distribution? (Answer choices are below the image.) PRESTIGE LAW CORRECTED (if checked) PAYER'S name, street address, city or town, state or province. country, ZIP or foreign postal code, and telephone no. 1 Gross distribution OMB No. 1545-0119 42,000.00 S 2a Taxable amount 2021 not determined Form 1099-R Total distribution 600 MASSACHUSETTS AVENUE YOUR CITY, YS XXXXX PAYER'S TIN XX-XXXXXXX RECIPIENT'S TIN XXX-XX-XXXX 42,000.00 2b Taxable amount 3 Capital gain (included in 4 Federal income tax box 2a) withheld 8,400.00 Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAS, Insurance Contracts, etc. Copy B Report this income on your federal tax return. If this form shows
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