Mia contributed $75,000 to a traditional IRA. She just retired at age 55 and would like...
Mia contributed $75,000 to a traditional IRA. She just retired at age 55 and would like to withdraw the funds. She is in the 15% federal marginal tax bracket. How much will she pay in income taxes on the funds?
$0.
$11,250 plus a 10% penalty.
$12,500.
$11,250.
Homework Answers
Since Mia is withdrawing her contribution to IRA before reaching 59.5 years of age, she will have to pay the tax with 10% penalty.
Income tax = 75,000 * 0.15 = $11,250
Plus a penalty of 10%
So, the answer is option B. $11,250 plus a 10% penalty.
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B.
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