Betty is age 61 and was awarded $448,000 from her husband's 401(K) in their divorce which she
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Question:
Betty is age 61 and was awarded $448,000 from her husband's 401(K) in their divorce which she transferred to an IRA. After hearing about 72(t)(2)(c) she then took out $44,000 to bring her grandchildren to Disney. What is the tax consequence of the distribution? a. She will not have to pay any tax or early withdrawal penalty b. She will only have to pay the penalty
c. She will only have to pay tax
d. She will have to pay both the tax and penalty
Expert Answer:
The answer is d She will have to pay both the tax and penalty Heres the breakdown IRA Distributions ... View the full answer
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