Amount of withdrawal after tax considerations

Reference no: EM13126474

Brooklyn has been contributing to a traditional IRA for seven years (all deductible contributions) and has a total of $30,000 in the account. In 2010, she is 39 years old and has decided that she wants to get a new car. She withdraws $20,000 from the IRA to help pay for the car. She is currently in the 25 percent marginal tax bracket. (Omit the "tiny_mce_markerquot; sign in your response.)

Required:

What amount of the withdrawal, after tax considerations, will Brooklyn have available to purchase the car?

Reference no: EM13126474

Questions Cloud

What is the full cost of the globe : Assume that the quantity demanded at the price calculated in part a is only 600 units. What is the full cost of the globe, and what is the price with a 25 percent markup?

Determine the delta g standard state : Determine the delta G standard state at 298 K from the following standard state values at T= 298, Determine the delta G standard state at 1000K. assume delta H is independent of temperature

Determine the amount rex must include in gross income : The plan has a $2,000 deductible, but his employer contributed $1,500 to Rex' s HAS. Rex withdrew only $800 from the HAS, and the account earned $50 interest during the year.

Why is inventory removed from the acid-test ratio : What is the major difference between the current ratio and the acid-test ratio? Why is inventory removed from the acid-test ratio?

Amount of withdrawal after tax considerations : What amount of the withdrawal, after tax considerations, will Brooklyn have available to purchase the car?

What mass of sucrose should be combined : What mass of sucrose should be combined with 455 g of water to make a solution with an osmotic pressure of 8.75 atm at 320 K?

What is the amount of the overall tax : For the current year, Maple Corporation, a C corporation, reports taxable income of $200,000 before paying salary to its sole shareholder, Diane.

Are we going about renewable energy in the wrong way : Do you think that economics and environmental goals (renewable energy goals in particular) can work together? In what ways and are we going about renewable energy in the wrong way? What prohibits renewable energy from being efficient? How could we ..

Polynomials over the rational field : Let D be a Euclidean ring, F its field of quotients. Prove the Gauss lemma for polynomials with coefficients in D factored as product of polynomials with coefficients in F.

User Account

All Pages