Nathan and his wife Becky are both 79 years old. They are in the 35% marginal tax

Fantastic news! We've Found the answer you've been seeking!

Question:

Nathan and his wife Becky are both 79 years old. They are in the 35% marginal tax bracket. Nathan's IRA has a balance of $1,500,000. According to IRS Table III, a person aged 79 has a Distribution Period factor of 22.3. If Nathan chooses not to take his RMD, how much will he owe in taxes and penalties (total)?

Sandra has a monthly salary of $12,000. Her company allows her to put as much as 20% of her salary into the company's 401(k) plan. The IRS limit on employee contributions to the 401(k) plan is $20,000 per year. The company offers a generous matching program within the 401(k). Sandra wants to make sure she receives all the matching funds possible. What is the maximum amount she should put into the 401(k) each month, in order to ensure she collects all the company matching funds (while also maximizing her own contributions to the 401(k))?

Leroy decides to contribute 12% of his monthly salary of $5,000 to his 401(k) plan. His company matches the first 5% of his contribution dollar for dollar (100% match). The company matches the next 5% of his salary 50 cents on the dollar (50% match). How much is the total contribution to his 401(k) plan each month (employee contribution plus employer match)?

Tammy is considering retiring at age 57 and beginning her pension plan payouts now (instead of waiting until they would normally begin at age 65). She will receive 73% of her normal scheduled payout if she starts now. Her level payout at age 65 is scheduled to be $7,000 per month. How much will she receive is she starts the payouts today?

Gino has an IRA with a balance of $600,000. He also cash in his savings account of $200,000. Gino is in the 24% marginal tax bracket. If Gino converts his IRA to a Roth IRA, what will his total spending power be (including his savings account) after the transaction?