Kathleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes toa traditional 401(k) on her behalf. Kathleen has contributed $43,680 to her Roth 401(k) over the past six years. The currentbalance in her Roth 401(k) account is $72,800, and the balance in her traditional 401(k) is $55,200. Kathleen needs cashbecause she is taking a month of vacation to travel the world. Answer the following questions relating to distributions fromKathleen's retirement accounts assuming her marginal tax rate for ordinary income is 24 percent.Problem 13-61 Part c (Algo)c. If Kathleen retires from MH and then receives a $19,500 distribution from her traditional 401(k), how much will she be able to keepafter paying taxes and penalties, if any, on the distribution?Net distribution Kathleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes toa traditional 401(k) on her behalf, Kathleen has contributed $43,680 to her Roth 401(k) over the past six years. The currentbalance in her Roth 401(k) account is $72,800, and the balance in her traditional 401(k) is $55,200. Kathleen needs cashbecause she is taking a month of vacation to travel the world. Answer the following questions relating to distributions fromKathleen's retirement accounts assuming her marginal tax rate for ordinary income is 24 percent.Problem 13-61 Part a (Algo)a. If Kathleen receives a $19,500 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxesand penalties, if any, on the distribution?Net distribution

The 401(k) plan was created with the intention of encouraging employee savings for retirement.…

Answered: Kathleen, age 56, works for MH…

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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