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Niles has $2,000 he considers his emergency fund. Niles contributed the money to a Roth IRA at his brokerage firm. The invested funds in the
Niles has $2,000 he considers his emergency fund. Niles contributed the money to a Roth IRA at his brokerage firm. The invested funds in the IRA earned 5% this year and brokerage firm charged total fees of $75. His marginal tax rate is 22%.
- Calculate the balance of the fund after one year, not accounting for fees.
- Suppose he has an unexpected car repair of $1,000 and must make a withdrawal. What are the penalties and taxes associated with this withdrawal?
- What does Niles have left after making the withdrawal and paying all relevant penalties, fees, and taxes?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
