Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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,
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 $37,200 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $62,000 and the balance in her traditional 401(k) is $48,000. Kathleen needs cash because she is taking a month of vacation to travel the world. Answer the following questions relating to distributions from Kathleens retirement accounts assuming her marginal tax rate for ordinary income is 24 percent. Problem 13-57 Part c (Algo) c. If Kathleen retires from MH and then receives a $15,000 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
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