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carminescorpion715Lv1

28 Sep 2019

Over the past three years, Sherry has contributed a total of$13,500 to a Roth IRA account ($4,500 a year). The current value ofthe Roth IRA is $21,850. In the current year, Sherry withdraws$19,500 of the account balance to purchase a car. Assuming Sherryis in a 25 percent marginal tax bracket, how much of the $19,500withdrawal will she retain after taxes to fund her carpurchase?

a) amount of withdrawl?__

b) non taxable amount?

c) amount subject to tax ?_

d) tax rate?_25

e) Penalty rate?10_

f) Tax?_

g) Penalty?

h) After tax withdrawl retained?____

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Nelly StrackeLv2

28 Sep 2019

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Related questions

1. Wendy is a sole proprietor with one employee. She maintains aSimple IRA in which she matches salary reduction contributions atthe rate of 3% of the employee's compensation. Where on her taxreturn does she report her own contribution, and where does shereport the contribution she makes on behalf of her employee?

a. Wendy's own salary reduction contribution and employermatches are reported on schedule C because she has an employee

b. Wendyâs own salary reduction contribution and her ownemployer match are reported on Form 1040; the matching contributionshe makes on behalf of herself and employee, as well as theemployeeâs elective deferrals, and all reported on Schedule C.

c. Wendyâs own salary reduction contribution and her ownemployer match are both reported on Form 1040: the matchingcontribution she makes to her employeeâs SIMPLE is reported onSchedule C.

d. Wendyâs own salary reduction contribution is reported on Form1040; the matching contributions for herself and on behalf of heremployee are both reported on Schedule C.

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a. Zero table and $466 subject to penalty

b. 466 taxable and 466 subject to penalty

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3. At age 55, Lisa was separated from service. She rolled over19,000, the entire balance of her 401(k), into an IRA. ThenDecember of the same year, Lisa had to take 2150 out of this newIRA in order to pay her bills. How much of distributions aresubject to the early distribution penalty?

a. zero

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c. 2150

d. 19000

4. A trustee-to-trustee rollover is the preferred way totransfer one retirement account to another. All of these arepotential problems when taxpayers take the distribution and handlethe rollover themselves:

a. The taxpayer must complete the entire rollover process with 60days or the distribution and will be taxable

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c. The distribution is subject to 20% withholding, and thetaxpayer must come up with the amount themselves or it will betaxable

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tealtoad562

Sally is 92 years old and single and claimed by her daughter asa dependent. During the tax year she received $1,900 in interestfrom her savings account, $1,500 in interest from State of New Yorkgeneral obligation bonds, and $8,000 distributions from a Roth IRA.What is her AGI?

$1,500

$1,900

$3,400

$11,400

2) Cranky, age 70, is single and an employee of UnknownCorporation. Her only sources of income in 2017 $80,000 of W-2wages, $5,100 in alimony payments, and a $1,000 cash gift from herbrother. Based on the above, Crankyâs adjusted gross income for thecurrent year is:

$80,000

$81,000

$83,000

$85,100

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$1,000

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$1,500

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$1,900

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Both employers must remit FUTAtaxes on the first $7,000 in wages they pay to the taxpayer.
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$0.
$500.
$800.
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Rollovers are normally taxableto the beneficiary.
Rollovers are permitted only inunusual circumstances.
A tax-free rollover can be madefrom a traditional IRA to another traditional IRA.
A tax-free rollover can be madefrom a traditional IRA to a Roth IRA.

4. Regarding a Coverdell Education SavingsAccount: (Points : 1)

Distributions are tax-free tothe beneficiary if they are used for his or her qualified educationexpenses.
Qualified education expensesinclude required tuition, fees, books, supplies, and equipment atan eligible educational institution.
Qualified expenses must bereduced by scholarships or other tax-free income.
All of the above.

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$600.
$1,200.
$1,260.
$6,300.

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Employees who own more than 5%of the corporation's stock.
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Employees who were in the top25% of employees based on compensation.
None of the above.

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$0.
$1,400.
$1,600.
$1,650.