You and your spouse have the following retirement accounts. Tell me how much you can take out orborrow from each account without incurring a tax penalty. Assume that you are a first time homebuyer and you are in the 17% Federal and state tax brackets.Your IRA $9,000Your Spouse's IRA $8,000Your Roth IRA $18,000 (10,000 of contributions)Your Spouse's Roth $15,000 (8,500 of contributions)Your 401(k) $110,000Based on the information above, answer the following questions:* number your answers 1,2,31) How much can you take out or borrow without penalty for a down payment?2) What is the maximum amount you can pay for a house if you put 20% down. Assume that youcan borrow any amount.

IRA- Individual retirement account is the account being maintained during the employment life of the…

Answered: 1) How much can you take out or borrow…

SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter12: Alternative Minimum Tax

Section: Chapter Questions

Problem 24CE

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Darrell is an employee of Whitneys. During the current year, Darrells salary is 136,000. Whitneys net self-employment income is also 136,000. Calculate the Social Security and self-employment taxes paid by Darrell and Whitney. Write a letter to Whitney in which you state how much she will have to pay in Social Security and self-employment taxes and why she owes those amounts.
Virginia and Richard are married taxpayers with adjusted gross income of $28,000 in 2019 If Virginia is able to make a $1,500 contribution to her IRA and Richard makes a $1,500 contribution to his IRA, what is the Saver's Credit Virginia and Richard will be eligible for? $0 $1,500 $2,000 $3,000 $4,000
An Individual Retirement Account (IRA) is an account in which the saver does not pay income tax on the amount deposited but is not allowed to withdraw the money until retirement. (The saver pays income tax at that point, but his or her tax bracket is much lower then.)Marlene Silva wishes to have an IRA that will be worth $100,000 when she retires at age 65. (Round your answers to the nearest cent.) (a) How much must she deposit at age 34 at 8 3/8% compounded daily? $ (b) If, at age 65, she arranges for the monthly interest to be sent to her, how much will she receive each thirty-day month?

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1) How much can you take out or borrow without penalty for a down payment? 2) What is the maximum amount you can pay for a house if you put 20% down. Assume that you can borrow any amount.