FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Jacob, age 38, has a Roth IRA balance of $90,000. He needs some money to start up a new business so he takes $70,000 out of his Roth IRA. Over the years, he has contributed $55,000 in total to the
Roth IRA and then rest are earnings. Assuming his marginal tax rate is 15%, what is his total tax liability (including the early-withdrawal penalty) for the $70,000 distribution he took?
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Transcribed Image Text:Jacob, age 38, has a Roth IRA balance of $90,000. He needs some money to start up a new business so he takes $70,000 out of his Roth IRA. Over the years, he has contributed $55,000 in total to the Roth IRA and then rest are earnings. Assuming his marginal tax rate is 15%, what is his total tax liability (including the early-withdrawal penalty) for the $70,000 distribution he took?
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