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Please answer all parts since they are all from the same problem. Thank you. Required information Problem 13-57 (LO 13-2) (Algo) (The following information applies
Please answer all parts since they are all from the same problem. Thank you.
Required information Problem 13-57 (LO 13-2) (Algo) (The following information applies to the questions displayed below.) Kathleen, age 56, works for MH, Inc., in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes to a traditional 401(k) on her behalf. Kathleen has contributed $40,080 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $66,800 and the balance in her traditional 401(k) is $51,200. Kathleen needs cash because she is taking a month of vacation to travel the world. Answer the following questions relating to distributions from Kathleen's retirement accounts assuming her marginal tax rate for ordinary income is 24 percent. Problem 13-57 Part a (Algo) a. If Kathleen receives a $17,000 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution Problem 13-57 Part b (Algo) b. If Kathleen receives a $17,000 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution Problem 13-57 Part c (Algo) c. If Kathleen retires from MH and then receives a $17,000 distribution from her traditional 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution Problem 13-57 Part d (Algo) d. If Kathleen retires from MH and then receives a $17,000 distribution from her Roth 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution Problem 13-57 Parte (Algo) e. Assume the original facts except that Kathleen is 60 years of age, not 56. If Kathleen receives a $17,000 distribution from her Roth 401(k) (without retiring), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distributionStep by Step Solution
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