How much withdrawal tax would apply to the total withdrawal

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Angela is 59 years old and has a balance of $620000 in her transition to retirement income stream account. She has a $248000 tax-free component and a $372000 taxable component (taxed element). Angela withdraws an income stream from this account, in the amount of $25000 for the current year. Angela's marginal tax rate, including the medicare levy is 39%.

Problem 1: For the 2020/21 financial year,how much withdrawal tax (including the Medicare Levy) would apply to the total withdrawal amount?

Select one:

a. $2550.00
b. $NIL
c. $3600.00
d. $5550.00

Reference no: EM132759996

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