! Required information Problem 13-61 (LO 13-2) (Algo) [The following information applies to the questions displayed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
! 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 $45,840 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $76,400, and the balance in her traditional 401(k) is $57,600. 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 $21,000 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? Net distribution b. If Kathleen receives a $21,000 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution c. If Kathleen retires from MH and then receives a $21,000 distribution from her traditional 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution d. If Kathleen retires from MH and then receives a $21,000 distribution from her Roth 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution e. Assume the original facts except that Kathleen is 60 years of age, not 56. If Kathleen receives a $21,000 distribution from her Roth 401(k) (without retiring), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution ! 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 $45,840 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $76,400, and the balance in her traditional 401(k) is $57,600. 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 $21,000 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? Net distribution b. If Kathleen receives a $21,000 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution c. If Kathleen retires from MH and then receives a $21,000 distribution from her traditional 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution d. If Kathleen retires from MH and then receives a $21,000 distribution from her Roth 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution e. Assume the original facts except that Kathleen is 60 years of age, not 56. If Kathleen receives a $21,000 distribution from her Roth 401(k) (without retiring), how much will she be able to keep after paying taxes and penalties, if any, on the distribution? Net distribution
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Q1. During November, these transactions took place in Singer Inc., a company that uses job order costing: a) Materials purchased on account $35,600. b) Materials issued to fill requisitions on job...
-
1. Learn more about this phenomenon. Who receives value in such transactions? Who loses value? 2. How are manufacturers dealing with this problem? Parallel imports, gray products, and price diversion...
-
Crop-Quick Inc. replenishes its three distribution centers in Boston, Denver and Houston from its Las Vegas central supply warehouse. The distribution schedule for one of its products for the next...
-
Presented below is cash flow information for two competitorsThe Longo Corporation and The Davis Company (amounts in thousands): Describe the cash management strategy of each company by identifying...
-
The Coca-Cola Company is a global soft drink beverage company (ticker symbol = KO) that is a primary and direct competitor with Starbucks. The data in Exhibits 12.14 to 12.16 (pages 806-809) include...
-
Wilde Software Development has a 1 0 % unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 5 % rate after Year 3 . Wilde's tax rate is...
-
It's no surprise that Google has topped the list of Fortune 100's " Best Companies to Work for " yet again this year for a grand total of four times. Their jaw-dropping company campus Googleplex is...
-
Give a brief account of constant-volume and constant-pressure processes.
-
What are free energy functions? Classify them. Mention the importance of free energy functions in the analysis of thermodynamic processes.
-
When can heating effect instead of cooling effect be produced by a throttling device?
-
What is the significance of inter-stage cooling in multistage compression?
-
The potential energy of a body of \(20 \mathrm{~kg}\) mass is \(2 \mathrm{~kJ}\). What should be the height of the body from the ground?
-
3. Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two-for-one in the last period. P0 Q0 P1 Q1 P2 Q2 A...
-
Use this circle graph to answer following Exercises. 1. What fraction of areas maintained by the National Park Service are designated as National Recreation Areas? 2. What fraction of areas...
-
Oligopolists may charge a price lower than the profit-maximizing price to _________ new firms from entering the market. This strategy will be effective when new firms face _________ costs than...
-
In the traditional prisoners dilemma, a(n) _________ matrix is used to illustrate the various possibilities and results for the two parties.
-
In _________, each firm sets its policy without consulting other firms.
Study smarter with the SolutionInn App