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 124 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
Gracias!

nothere

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Did you know?

The longest a person has survived after a heart transplant is 24 years.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Traditional animal phylogeny based on body plans. Traditional animal phylogeny based on body plans.
Traditional Chinese Medicines Reveals Legality Issues and Health Safety Concerns Traditional Chinese Medicines Reveals Legality Issues and Health Safety Concerns
Cuy being raised at home in the traditional Andean fashion Cuy being raised at home in the traditional Andean fashion
Evolutionary ecologists live and do research in contemporary cultures that maintain all or some aspe Evolutionary ecologists live and do research in contemporary cultures that maintain all or some aspe
buffers commonly employed for biochemical studies buffers commonly employed for biochemical studies
Traditional liquor: K-soot Traditional liquor: K-soot
Video: Enzyme structure - Properties of enzymes

For a complete list of videos, visit our video library