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Mr. Thano, age 47, withdrew $22,000 from his employer-sponsored qualified retirement plan to pay for his daughter's wedding. Compute the tax cost (and premature withdrawal penalty, if applicable) of the withdrawal if Mr. Thano has a 37% marginal tax rate on ordinary income.

a. $2,200
b. $8,140
c. $10,340
d. $11,000

Sagot :

abiolataiwo2015

Based on the information given  the tax cost is: c. $10,340.

Tax cost

Using this formula

Tax cost=(Amount withdrew×Marginal tax)+ Premature withdrawal penalty

Let plug in the formula

Tax cost=x ($22,000 × 37%) + $2,200

Tax cost=$8,140+$2,200

Tax cost=$10,340

Inconclusion the tax cost  is: c. $10,340.

Learn more about tax cost here:https://brainly.com/question/9437038

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