You and your spouse have the following retirement accounts. Tell me how much you can take out orborrow from each account without incurring a tax penalty. Assume that you are a first time homebuyer and you are in the 17% Federal and state tax brackets.Your IRA $9,000Your Spouse's IRA $8,000Your Roth IRA $18,000 (10,000 of contributions)Your Spouse's Roth $15,000 (8,500 of contributions)Your 401(k) $110,000Based on the information above, answer the following questions:* number your answers 1,2,31) How much can you take out or borrow without penalty for a down payment?2) What is the maximum amount you can pay for a house if you put 20% down. Assume that youcan borrow any amount.

IRA- Individual retirement account is the account being maintained during the employment life of the…

Answered: 1) How much can you take out or borrow…

1) How much can you take out or borrow without penalty for a down payment? 2) What is the maximum amount you can pay for a house if you put 20% down. Assume that you can borrow any amount.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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You and your spouse have the following retirement accounts. Tell me how much you can take out or
borrow from each account without incurring a tax penalty. Assume that you are a first time home
buyer and you are in the 17% Federal and state tax brackets.
Your IRA $9,000
Your Spouse's IRA $8,000
Your Roth IRA $18,000 (10,000 of contributions)
Your Spouse's Roth $15,000 (8,500 of contributions)
Your 401(k) $110,000
Based on the information above, answer the following questions:
* number your answers 1,2,3
1) How much can you take out or borrow without penalty for a down payment?
2) What is the maximum amount you can pay for a house if you put 20% down. Assume that you
can borrow any amount.

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