Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,000 to the Roth IRA ($4,000 a year). The current value of the Roth IRA is $16,300. In the current year, Sherry withdraws $14,000 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $14,000 withdrawal will she retain after taxes to fund her car purchase? Amount of withdrawal Non-taxable amount Amount subject to tax $ Tax rate Penalty rate % Тах Penalty After tax withdrawal retained

Sherry, who is 52 years of age, opened a Roth IRA three years ago. She has contributed a total of $12,000 to the Roth IRA ($4,000 a year). The current value of the Roth IRA is $16,300. In the current year, Sherry withdraws $14,000 of the account balance to purchase a car. Assuming Sherry's marginal tax rate is 24 percent, how much of the $14,000 withdrawal will she retain after taxes to fund her car purchase? Amount of withdrawal Non-taxable amount Amount subject to tax $ Tax rate Penalty rate % Тах Penalty After tax withdrawal retained

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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