Clayton received a $140,000 distribution from his 401(k) account this year. Assuming Clayton's marginal tax rate is 25 percent, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 62nd birthday and she has not yet retired? Group of answer choices $0 $14,000 $35,000 $49,000 None of the choices is correct.

Clayton received a $140,000 distribution from his 401(k) account this year. Assuming Clayton's marginal tax rate is 25 percent, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 62nd birthday and she has not yet retired? Group of answer choices $0 $14,000 $35,000 $49,000 None of the choices is correct.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter9: Deduct Ions: Employee And Self-employed - Related Expenses

Section: Chapter Questions

Problem 38P

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Leroy and Amanda are married and have three dependent children. During the current year, they have the following income and expenses: Salaries 120,000 Interest income 45,000 Royalty income 27,000 Deductions for AGI 3,000 Deductions from AGI 9,000 a. What is Leroy and Amandas current year taxable income and income tax liability? b. Leroy and Amanda would like to lower their income tax. How much income tax will they save if they validly transfer 5,000 of the interest income to each of their children? Assume that the children have no other income and that they are entitled to a 1,050 standard deduction.
LO.6, 8 William, a high school teacher, earns about 50,000 each year. In December 2019, he won 1,000,000 in the state lottery. William plans to donate 100,000 to his church. He has asked you, his tax adviser, whether he should donate the 100,000 in 2019 or 2020. Identify the tax issues related to Williams decision.
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Ryan is 39 years old and works as a real estate agent. Ryans marginal tax rate is 24%. Ryan has a traditional (deductible) IRA with a current balance of 80,000. The IRA consists of 60,000 of contributions that Ryan made and deducted on his tax return and 20,000 of account earnings. In the current year, Ryan receives a distribution of the entire 80,000. He contributes 60,000 to a Roth IRA and keeps the remaining 20,000. What is Ryans total income tax and penalty on the transactions? a. 0 income tax, 0 penalty b. 20,000 income tax, 8,000 penalty c. 5,000 income tax, 2,000 penalty d. 19,200 income tax, 2,000 penalty