Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pls answer all the requirements and fill in the boxes. Requirement b. Assume Carrie Ann contributes a total of $12,000 over six years to a

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

Pls answer all the requirements and fill in the boxes.

Requirement b. Assume Carrie Ann contributes a total of $12,000 over six years to a Roth IRA. In 2029 , she withdraws $14,000 to pay off her car loan. Her financial advisor suggested she withdraw the money from the IRA for two major reasons: (1) to eliminate her debt and (2) no tax would be due on distributions from a Roth IRA after five years. Carrie Ann wants to verify the accuracy of her advisor's advice. What would be the tax consequences of this withdrawal? The tax consequences of this withdrawal are as follows: (Select all consequences that apply. If an input field is not used in the table, leave the input field empty; do not select a label.) Carrie Ann is single, age 35 , and wants to make a contribution to an IRA for the year ended December 31,202 is an active participant in a qualified retirement plan sponsored by her employer. Her AGI for 2023 is $144,000 considering any IRA contribution. Requirement a. What type of IRA, if any, is Carrie Ann eligible to make a contribution to for 2023 ? If she is elic to contribute to an IRA, what is the maximum amount that she can contribute to the IRA? (Complete all input fi Enter a " 0 " for any zero amounts. Do not round intermediary calculations. Only round the amount you enter in input field to the nearest whole dollar.) For 2023 Carrie Ann is eligible to make a \$ a \$ contribution to a Roth IRA and a \$ if Carrie Ann traditional deductible contribution to a traditional IRA. She is eligibl make nondeductible contribution to a traditional IR Alternatively, , she can contribute \$ to a nondeductible Alternatively, what if Carrie Ann withdrew the $14,000 to purchase a house (she is a first-time homebuyer)? Alternatively, if the $14,000 was used to purchase a house, the tax consequences of this withdrawal are as follows: (Select all consequences that apply. If an input field is not used in the table, leave the input field empty; do not select a label.) Requirements a. What type of IRA, if any, is Carrie Ann eligible to make a contribution to for 2023 ? If she is eligible to contribute to an IRA, what is the maximum amount that she can contribute to the IRA? b. Assume Carrie Ann contributes a total of $12,000 over six years to a Roth IRA. In 2029 , she withdraws $14,000 to pay off her car loan. Her financial advisor suggested she withdraw the money from the IRA for two major reasons: (1) to eliminate her debt and (2) no tax would be due on distributions from a Roth IRA after five years. Carrie Ann wants to verify the accuracy of her advisor's advice. What would be the tax consequences of this withdrawal? Alternatively, what if Carrie Ann withdrew the $14,000 to purchase a house (she is a first-time homebuyer)? c. Alternatively to Part b above, assume Carrie Ann has a traditional deductible IRA that has a balance of $40,000. She has been able to deduct all of her contributions to the IRA in prior years. Her financial advisor has recommended that she rollover the funds from her traditional IRA to a Roth IRA in 2023. What are the tax consequences of this rollover in 2023 ? Requirement c. Alternatively to Part b above, assume Carrie Ann has a traditional deductible IRA that has a balance of $40,000. She has been able to deduct all of her contributions to the IRA in prior years. Her financial advisor has recommended that she rollover the funds from her traditional IRA to a Roth IRA in 2023. What are the tax consequences of this rollover in 2023 ? A. Carrie Ann is not eligible to rollover her traditional IRA to a Roth IRA because her AGI is more than $100,000. As a result, there is no tax consequences in 2023 . B. Carrie Ann is eligible to rollover her traditional IRA to a Roth IRA. She must include the entire rollover amount in her gross income in the year of the rollover. C. Carrie Ann is eligible to rollover her traditional IRA to a Roth IRA. There is no tax consequences in 2023 because this is a qualified rollover. D. Carrie Ann is not eligible to rollover her traditional IRA to a Roth IRA because she is under age 59 1/2. As a result, there is no tax consequences in 2023

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting and Analysis Using Financial Accounting Information

Authors: Charles H. Gibson

13th edition

1285401603, 1133188796, 9781285401607, 978-1133188797

More Books

Students also viewed these Accounting questions

Question

c. A decrease in the price of electricity.

Answered: 1 week ago

Question

LO32.4 Explain the factors that cause changes (shifts) in AS.

Answered: 1 week ago