a- Shauna received a $106,500 distribution from her 401(k) account this year. As

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

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.