Answered

Westonci.ca offers fast, accurate answers to your questions. Join our community and get the insights you need now. Join our platform to get reliable answers to your questions from a knowledgeable community of experts. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.

Vivian (28) is the beneficiary of her deceased grandmother's traditional IRA. She received a Form 1099-R reporting the $10,000 gross distribution. The form had a distribution code "4" in box 7, indicating that the distribution is due to death. What is the tax consequence of this distribution?

Sagot :

Tundexi

The tax consequence of the distribution is that the Gross distribution will be taxable income but Vivian may claim an exemption from the 10% additional tax on early distributions.

The tax consequence entails the amount of taxable income which must be contributed to the tax authorities.

Here, because she received a Form 1099-R reporting the $10,000 gross distribution, then, she is liable to pay tax.

In conclusion, the tax consequence of the distribution is that the Gross distribution will be taxable income but Vivian may claim an exemption from the 10% additional tax on early distributions.

Read more about taxable income

brainly.com/question/25307637

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.