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 174 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

patma1981

  • Member
  • Posts: 292
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

As many as 20% of Americans have been infected by the fungus known as Histoplasmosis. While most people are asymptomatic or only have slight symptoms, infection can progress to a rapid and potentially fatal superinfection.

Did you know?

Pubic lice (crabs) are usually spread through sexual contact. You cannot catch them by using a public toilet.

Traditional animal phylogeny based on body plans. Traditional animal phylogeny based on body plans.
Cuy being raised at home in the traditional Andean fashion Cuy being raised at home in the traditional Andean fashion
Obtained from the deadly nightshade plant Atropa belladona, atropine remains a traditional drug ... Obtained from the deadly nightshade plant Atropa belladona, atropine remains a traditional drug ...
buffers commonly employed for biochemical studies buffers commonly employed for biochemical studies
Certain foods and lifestyle factors contribute to heartburn Certain foods and lifestyle factors contribute to heartburn
Traditional liquor: K-soot Traditional liquor: K-soot
Video: Ear Virtual Tour Animation

For a complete list of videos, visit our video library