Samuel, age 32, loses his job in a corporate downsizing. As a result of his termination, he receives a distribution of the balance in his 401k account of $20,000 (25,000-5,000 Federal Income Tax withholding) on May 1, 2020. Samuels marginal tax rate is 24%.

A. What effect will the distribution have on Samuels gross income and tax liability if he invests the $20,000 received in a mutual fund?

B. Same as part (a) except that Samuel invests the $20,000 received in a traditional IRA within 60 days of the distribution.

C. Same as part (a) except that Samuel invests the $20,000 received in a Roth IRA within 60 days of the distribution.

D. How could Samuel have received better tax consequences.