Question: Terrance, age 4 7 , withdrew $ 2 2 , 0 0 0 from an employer - sponsored qualified retirement plan to pay for a

Terrance, age 47, withdrew $22,000 from an employer-sponsored qualified retirement plan to pay for a new RV. Compute the tax cost (and premature withdrawal penalty, if applicable) of the withdrawal if Terrance has a 37% marginal tax rate on ordinary income.

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