19. Ralph has a $130,000 IRA with the Red Association. For personal reasons, he

Question

19. Ralph has a $130,000 IRA with the Red Association. For personal reasons, he decides to move his funds to the Blue Association. He requests that his funds be distributed to him on August 20, 20xx. (10 points) a. what amount will Ralph receive from the Red Association? 130000 b. What is the last day Ralph can deposit the funds from the Red Association and avoid taxation in the current year? c. If the funds were distributed from a qualified retirement plan (not an IRA), how much would Ralph receive? d. Assuming the funds were distributed from a qualified retirement plan, not an IRA, how much will Ralph have to contribute to the Blue Association to avoid taxable income and any penalties?

Explanation / Answer

a). Answer :- Amount received by Ralph from Red Association = $ 130,000.

b). Answer :- October 19, 20xx.

c). Answer :- Amount received by Ralph = 130000 - (130000 * 20 %)

= 130000 - 26000

= $ 104,000.

Conclusion :- Amount received by Ralph in the given question = $ 104,000.

d). Answer :- Amount contributed by Ralph to Blue Association for avoiding the taxable income and penalty amount in the given question = $ 130,000.

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