Answered

Explore Westonci.ca, the top Q&A platform where your questions are answered by professionals and enthusiasts alike. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

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

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Westonci.ca is here to provide the answers you seek. Return often for more expert solutions.