[The following information applies to the questions displayed below.] George (age 42 at year-end) has been...
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[The following information applies to the questions displayed below.] George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions) and his IRA is now worth $31,400. He is planning on transferring (or rolling over) the entire balance into a Roth IRA account. George's marginal tax rate is 24 percent. (Leave no answer blank. Enter zero if applicable. Round your intermediate calculations and final answers to the nearest whole dollar amount.) a. What are the tax consequences to George if he takes $31,400 out of the traditional IRA and puts the entire amount into a Roth IRA? Тах рayable 2$ 31,400 Penalty $ 24 Total $ 31,424 b. What are the tax consequences to George if he takes $31,400 out of the traditional IRA, pays the taxes due from the IRA distribution, and contributes the remaining distribution to the Roth IRA? |Таx рayable Penalty Total $ c. What are the tax consequences to George if he takes $31,400 out of the traditional IRA, keeps $12,560 to pay taxes and to make a down payment on a new car, and contributes the remaining distribution to the Roth IRA? Tax payable Penalty Total $ [The following information applies to the questions displayed below.] George (age 42 at year-end) has been contributing to a traditional IRA for years (all deductible contributions) and his IRA is now worth $31,400. He is planning on transferring (or rolling over) the entire balance into a Roth IRA account. George's marginal tax rate is 24 percent. (Leave no answer blank. Enter zero if applicable. Round your intermediate calculations and final answers to the nearest whole dollar amount.) a. What are the tax consequences to George if he takes $31,400 out of the traditional IRA and puts the entire amount into a Roth IRA? Тах рayable 2$ 31,400 Penalty $ 24 Total $ 31,424 b. What are the tax consequences to George if he takes $31,400 out of the traditional IRA, pays the taxes due from the IRA distribution, and contributes the remaining distribution to the Roth IRA? |Таx рayable Penalty Total $ c. What are the tax consequences to George if he takes $31,400 out of the traditional IRA, keeps $12,560 to pay taxes and to make a down payment on a new car, and contributes the remaining distribution to the Roth IRA? Tax payable Penalty Total $
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Related Book For
Essentials of Federal Taxation 2019
ISBN: 9781260190045
10th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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