Brooklyn has been contributing to a traditional IRA for seven years (all deductible contributions) and has a total of $30,000 in the account. In 2021, she is 39 years old and has decided that she wants to get a new car. She withdraws $20,000 from the IRA to help pay for the car. She is currently in the 24 percent marginal tax bracket. What amount of the withdrawal, after tax considerations, will Brooklyn have available to purchase the car? After tax withdrawal
Brooklyn has been contributing to a traditional IRA for seven years (all deductible contributions) and has a total of $30,000 in the account. In 2021, she is 39 years old and has decided that she wants to get a new car. She withdraws $20,000 from the IRA to help pay for the car. She is currently in the 24 percent marginal tax bracket. What amount of the withdrawal, after tax considerations, will Brooklyn have available to purchase the car? After tax withdrawal
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:Brooklyn has been contributing to a traditional IRA for seven years (all deductible contributions) and has a total of $30,000 in the
account. In 2021, she is 39 years old and has decided that she wants to get a new car. She withdraws $20,000 from the IRA to help
pay for the car. She is currently in the 24 percent marginal tax bracket. What amount of the withdrawal, after tax considerations, will
Brooklyn have available to purchase the car?
After tax withdrawal
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