Question: ! Required information Problem 1 3 - 6 1 ( LO 1 3 - 2 ) ( Algo ) [ The following information applies to

!
Required information
Problem 13-61(LO 13-2)(Algo)
[The following information applies to the questions displayed below.]
Kathleen, age 56, works for MH Incorporated in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes to a traditional 401(k) on her behalf. Kathleen has contributed $41,520 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $69,200, and the balance in her traditional 401(k) is $52,800. Kathleen needs cash because she is taking a month of vacation to travel the world. Answer the following questions relating to distributions from Kathleen's retirement accounts assuming her marginal tax rate for ordinary income is 24 percent.
Problem 13-61 Part a (Algo)
a. If Kathleen receives a $18,000 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution?
 ! Required information Problem 13-61(LO 13-2)(Algo) [The following information applies to

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!