a- Shauna received a $106,500 distribution from her 401(k) account this year. As
ID: 2734807 • Letter: A
Question
a-
Shauna received a $106,500 distribution from her 401(k) account this year. Assuming Shauna's marginal tax rate is 25%, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 59th birthday and she has not yet retired?
$0.
$26,625.
$37,275.
$10,650.
None of these.
B-
Bill would like some tax benefits for his investment expenses incurred this year. His AGI is $190,100. Currently, his expenses consist of: (1) $1,010 investment advice fees, (2) $1,510 unreimbursed employee business expenses (a miscellaneous itemized deduction), and (3) $610 tax return preparation fees. How much more, if any, must Bill spend for investment expenses this year before he receives any tax benefit?
None of these
More than $672
More than $500
Zero, Bill is already receiving a benefit.
More than $900
C- Jamison's gross tax liability is $7,600. Jamison had $2,850 of available credits and he had $4,305 of taxes withheld by his employer. What is Jamison's taxes due (or taxes refunded) with his tax return?
$4,750 taxes due.
$3,295 taxes due.
$445 tax refund.
$445 taxes due.
Explanation / Answer
The IRS assesses a 10% penalty for early withdrawal (prior to age 59½). Also the marginal tax rate is 25%
Hence total amount of tax to be paid by Shauna = 106500 x 35% = $37275
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