Question

Angela is 70 years old, and has accumulated $1,750,000 in her ROTH IRA. She wants to withdraw all $1,750,000 this year in order to buy a French chateau to live in during her golden years, and is concerned about the tax consequences. How much will she have to pay in taxes when she withdraws this money from her ROTH IRA if her marginal tax bracket is 32%?

Answer #1

**Age 59½ to
70.**

**Withdrawals from a Roth IRA if you've had less than five
years.**

If you haven’t met the five-year holding requirement, your earnings will be subject to taxes but not penalties.

**Withdrawals from a Roth IRA you've had more than five
years.**

If you’ve met the five-year holding requirement, you can withdraw money from a Roth IRA with no taxes or penalties.

So here if she has fulfilled 5 years condition, then there will be no taxes

If she has not fulfilled 5 year condition, then there will be taxes @ 32%.

Question 11
Even if you have opened and contributed to a traditional or Roth
IRA in the past, you can convert it (under specified conditions)
into the other type of IRA. Which of these types of conversions is
by far the more common:
From traditional to Roth
From Roth to traditional
Question 12
If you expect not to spend the contents of your IRA during your
lifetime and would like to leave the money to your children, you
should contribute...

The Taxpayer Relief Act of Country A created the Roth IRA (A
Roth IRA is an individual retirement account (IRA) that allows
qualified withdrawals on a tax-free basis provided certain
conditions are satisfied. Established in 1997, it was named after
William Roth, a former Delaware Senator), which permits qualifying
individuals to make after-tax retirement contributions of up to
$2,000 annually. Contributions to a Roth IRA are not
tax-deductible, but no taxes are paid on earnings generated from a
Roth IRA....

One of the simplest tax avoidance strategies is to contribute to
a Roth IRA, although this may not be right for everyone. Some
individuals, particularly low-income households that may be
eligible for tax credits because of young children in the home, may
benefit more from contributions to a traditional IRA. Here, you
want to help Susan identify the best retirement savings option for
her situation.
Susan is 25, single, and makes $42,000 a year. Susan does not have
access to...

Faith wants to retire in 35 years. She makes annual
contributions to a Roth IRA in the amount of $3,950. She is taxed
at 35% today, but anticipates that will change to 25% in her
retirement. If the average annual rate of return on the account is
6.3%, what is the net value of Faith's IRA account when she
retires?
A. $305,053.33
B. $351,984.61
C. $420,925.32
D. $434,750.32
Please help!!!!

One of the simplest tax avoidance strategies is to contribute to
a Roth IRA, although this may not be right for everyone. Some
individuals, particularly low-income households that may be
eligible for tax credits because of young children in the home, may
benefit more from contributions to a traditional IRA. Here, you
want to help Debra identify the best retirement savings option for
her situation.
Debra is 25, single, and makes $42,000 a year. Debra does not have
access to...

Your aunt is 65 years old and has just retired with $750,000 in
her IRA account She expects the investments in this account to earn
a return of 8.5% each year. She also expects to live for 30 years
in retirement. She plans to withdraw an equal amount from this
account each year starting now and also plans to leave $50,000 to
you in 30 years. How much can she withdraw per year from the
account?

George (age 42 at year-end) has been contributing to a
traditional IRA for years (all deductible contributions) and his
IRA is now worth $31,800. 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 $31,800...

Stephanie made a fully deductible contribution to a traditional
IRA account several years ago. In 2019, she withdrew $4,000 and
contributed (rolled over) $3,000 to a Roth IRA. What amount of
taxes and penalty is she required to pay on the rollover? Assume
her marginal tax rate is 25%.

Your client is 32 years old. She wants to begin saving for
retirement, with the first payment to come one year from now. She
can save $5,000 per year, and you advise her to invest it in the
stock market, which you expect to provide an average return of 9%
in the future.
If she follows your advice, how much money will she have at 65?
Do not round intermediate calculations. Round your answer to the
nearest cent.
$
How...

1. Mary establishes a Roth IRA at age 50 and contributes the
maximum amount per year to the Roth IRA for 15 years. The account
is now worth $199,000, consisting of $75,000 in contributions plus
$124,000 in accumulated earnings. How much can Mary withdraw
tax-free
a.
$0
b.
$75,000
c.
$199,000
d.
$124,000
2. Brenda travels from Chicago to Barcelona (Spain) on business.
She is gone 10 days during which time she spends 7 days conducting
business and 3 days...

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