1. Susie, age 52, withdrew $50,000 out of her traditional IRA. The distribution consisted of half her original contributions and half earnings. Assuming her marginal tax rate is 24%, what amount of taxes and penalties must she pay related to the distribution?
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3. Assume the same facts as #4 above except that the distribution was from a Roth IRA. What amount of taxes and penalties must she pay related to the distribution?

Answer rating: 100% (QA)

Distributedamount from traditional IRA 50000 Half of the contribution 25000 basis returned Taxable ... View the full answer