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You as a young worker decide to use money in your traditional IRA account to pay for an unexpected $1500 expense. If your withdrawal
You as a young worker decide to use money in your traditional IRA account to pay for an unexpected $1500 expense. If your withdrawal faces a 10% early withdrawal penalty and you pay a marginal tax rate of 20%, how much must you take out of your account in order to pay the expense, the penalty, and the taxes on your withdrawal? As a self-employed worker you pay FICA taxes at the rate of 15.3% of your earnings. You earned $48186 this year. How much must you pay as your FICA contribution?
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