Question: Telly age 38 has a 140 000 IRA with Blue Mutual

Telly, age 38, has a $140,000 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so he opens a Green Fund IRA. Telly asked for and received his balance from the Blue Fund on May 1, 2014.
a. What amount will Telly receive from the Blue Fund IRA? $____________
b. What amount must Telly contribute to the Green Fund IRA to avoid having taxable income and penalties for early withdrawal? $____________
c. When is the last day Telly can roll over the amount received into the Green Fund IRA and avoid taxation in the current year, assuming no unusual circumstances? ____________
d. What amount would Telly receive if the distribution were from his employer’s qualified retirement plan? $____________

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  • CreatedJuly 16, 2015
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