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Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,600 to the Roth IRA
Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,600 to the Roth IRA ($4,200 a year). The current value of the Roth IRA is $17,600. In the current year, Sherry withdraws $15,300 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $15,300 withdrawal will she retain after taxes to fund her car purchase?
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$ 0 Amount of withdrawal Non-taxable amount Amount subject to tax Tax rate Penalty rate | Penalty After tax withdrawal retained %Step by Step Solution
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