This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Dave and Tammy are both employed but are eligible to contribute to a traditional IRA. If they each ... (Read 117 times)

bobypop

  • Hero Member
  • *****
  • Posts: 539
on: Apr 14, 2019

Question 1

What would be the difference in the tax consequences of an $18,000 withdrawal from a Roth IRA versus a traditional IRA if $15,000 represents long-term capital gains, $2,000 is short-term capital gains, and $1,000 is interest? Assume a tax rate of 30% and a capital gains tax rate of 10%.


◦ $5,200 more in taxes with a traditional IRA
◦ $4,800 more in taxes with a traditional IRA
◦ $5,400 more in taxes with a traditional IRA
◦ $5,400 more in taxes with a Roth IRA

Question 2

Dave and Tammy are both employed but are eligible to contribute to a traditional IRA. If they each contribute $5,500 to their respective accounts, how much federal income tax will they save if they are in the 30% marginal tax bracket?


◦ $3,300
◦ $3,000
◦ $1,650
◦ $ 0, since contributions to a traditional IRA are not deductible from income for federal income tax.
Personal Finance ¦ Madura ¦ 6th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by bobypop on Apr 14, 2019

brittanywood

  • Sr. Member
  • ****
  • Posts: 355
Reply #1 on: Apr 14, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 45% of students answer this correctly


bobypop

  • Member
  • Posts: 539
Reply 2 on: Apr 14, 2019
YES! Correct, THANKS for helping me on my review

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Many people have small pouches in their colons that bulge outward through weak spots. Each pouch is called a diverticulum. About 10% of Americans older than age 40 years have diverticulosis, which, when the pouches become infected or inflamed, is called diverticulitis. The main cause of diverticular disease is a low-fiber diet.

Did you know?

The first oncogene was discovered in 1970 and was termed SRC (pronounced "SARK").

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Cuy being raised at home in the traditional Andean fashion Cuy being raised at home in the traditional Andean fashion
Organization of traditional source records Organization of traditional source records
Shope’s Model of Young Driver Crash Risks The model shows that many factors contribute to crash ris Shope’s Model of Young Driver Crash Risks The model shows that many factors contribute to crash ris
A noose hanging from a “Liberty Tree” reveals this artist’s bias: The “tar-and-feathering” of a Brit A noose hanging from a “Liberty Tree” reveals this artist’s bias: The “tar-and-feathering” of a Brit
The traditional human karyotypes derived from a normal female and a normal male The traditional human karyotypes derived from a normal female and a normal male
The traditional human karyotypes derived from a normal female and a normal male The traditional human karyotypes derived from a normal female and a normal male
Video: Secondary and tertiary levels of protein structure Animation

For a complete list of videos, visit our video library