Reference no: EM132952743
Problem - Kathleen, age 56, works for MH, Inc., in Dallas, Texas. Kathleen contributes to a Roth 401(k), and MH contributes to a traditional 401(k) on her behalf. Kathleen has contributed $40,080 to her Roth 401(k) over the past six years. The current balance in her Roth 401(k) account is $66,800 and the balance in her traditional 401(k) is $51,200. Kathleen needs cash because she is taking a month of vacation to travel the world. Answer the following questions relating to distributions from Kathleen's retirement accounts assuming her marginal tax rate for ordinary income is 24 percent.
a. If Kathleen receives a $17,000 distribution from her traditional 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution?
b. If Kathleen receives a $17,000 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties, if any, on the distribution?
c. If Kathleen retires from MH and then receives a $17,000 distribution from her traditional 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution?
d. If Kathleen retires from MH and then receives a $17,000 distribution from her Roth 401(k), how much will she be able to keep after paying taxes and penalties, if any, on the distribution?
e. Assume the original facts except that Kathleen is 60 years of age, not 56. If Kathleen receives a $17,000 distribution from her Roth 401(k) (without retiring), how much will she be able to keep after paying taxes and penalties, if any, on the distribution?
|
What is the company cost of goods sold for fiscal for aiello
: Find what the company's cost of goods sold for fiscal 2016 is? Aiello, Inc. had the inventory in fiscal 2016. The company uses the LIFO method of accounting.
|
|
Determine the degree of operating leverage
: Poseidon Swim has average fixed costs per year of $5,496. Determine the degree of operating leverage for the level of production and sales 495 swim trunks
|
|
What would be the company new cm ratio
: If the new plant is built, what would be the company's: (a) new CM ratio; (b) new break-even point in number of computers; and (c) new net income?
|
|
Which discount percentage did she receive
: Ann bought three sweaters online. Each of the sweaters was normally priced at $75. Which discount percentage did she receive
|
|
How much will she be able to keep after paying taxes
: If Kathleen receives a $17,000 distribution from her Roth 401(k) account, how much will she be able to keep after paying taxes and penalties
|
|
Compute the total manufacturing cost of goods sold
: Compute the total manufacturing cost of goods sold. CompuDesk,Inc., makes an oak desk specially designed for personal computers.
|
|
What is the markup percentage used on the product
: If Camelot uses absorption manufacturing cost when applying its markup, what is the markup percentage used on this product?
|
|
Explain why fridges ltd can or cannot claim a deduction
: Fridges Ltd manufactures drink fridges in a factory in Christchurch. Explain why Fridges Ltd can or cannot claim a deduction for the cost of installing
|
|
Compute the bond issue price
: Baiman, Inc. issues $1,000,000 of zero-coupon bonds that mature in 10 years. Compute the bond issue price
|