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 175 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
Thanks for the timely response, appreciate it

scottmt

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

The average office desk has 400 times more bacteria on it than a toilet.

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?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Traditional animal phylogeny based on body plans. Traditional animal phylogeny based on body plans.
Common traditional surgical incisions Common traditional surgical incisions
Worldwide map of traditional psychoactive substance use. Worldwide map of traditional psychoactive substance use.
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
Twelve primary energy channels and the Conception and Governing Vessels of Traditional Chinese ... Twelve primary energy channels and the Conception and Governing Vessels of Traditional Chinese ...
Traditional liquor: K-soot Traditional liquor: K-soot
Video: Definition of heart rate

For a complete list of videos, visit our video library