?Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $13,800 to a Roth IRA ($4,600 a year). The current value of the Roth IRA is $21,700. In the current year, Sherry withdraws $19,400 of the account balance to purchase a car. Assuming Sherry is in a 25 percent marginal tax bracket, how much of the $19,400 withdrawal will she retain after taxes to fund her car purchase?

Problem 13-73 (LO 13-4) Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $13,800 to a Roth IRA ($4,600 a year). The current value of the Roth IRA is $21,700. In the current year, Sherry withdraws $19,400 df the account balance to purchase a car. Assuming Sherry is in a 25 percent marginal tax bracket, how much of the $19,400 withdrawal will she retain after taxes to fund her car purchase? Amount of withdrawal Non-taxable amount Amount subject to tax Tax rate Penalty rate ax Penalty After tax withdrawal retained etained References Book & Resources Difficulty: 2 Medium Problem 13-73 (LO 13-4) Learning Objective: 13-04 Determine the tax consequences of traditional and Roth Individual Retirement Accounts and explain the differences between them. es of traditional and Roth Individua