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In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000 on the loan and her account had a balance of $45,000 without regard to the loan. She requested a total distribution from the account. How much will be withheld from the distribution for the tax? $0 $7,000 $7,800 $9,000

In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000 on the loan and her account had a balance of $45,000 without regard to the loan. She requested a total distribution from the account. How much will be withheld from the distribution for the tax? $0 $7,000 $7,800 $9,000

FINANCIAL ACCOUNTING
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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In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000 on the loan and her account had a balance of $45,000 without regard to the loan. She requested a total distribution from the account. How much will be withheld from the distribution for the tax? $0 $7,000 $7,800 $9,000
Transcribed Image Text:In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000 on the loan and her account had a balance of $45,000 without regard to the loan. She requested a total distribution from the account. How much will be withheld from the distribution for the tax? $0 $7,000 $7,800 $9,000
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