Suppose a taxpayer is trying to decide between saving outside an IRA or saving through a traditional

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Suppose a taxpayer is trying to decide between saving outside an IRA or saving through a traditional IRA. If the taxpayer needs the savings before reaching age 59 ½, should he or she necessarily avoid the IRA because of the 10% early withdrawal penalty? Why or why not? If the taxpayer must make a withdrawal before age 59 ½, which IRA might be better, the traditional IRA or the Roth IRA?

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Federal Taxation 2017 Individuals

ISBN: 9780134420868

30th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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