Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. - (19788-fa2021) coms 323 presentation 1 - incorre

- (19788-FA2021) COMS 323 presentation 1 - Incorrect Question 6 0/2 pts Since 2009 Mike...

70.2K

Verified Solution

Question

Finance

image
- (19788-FA2021) COMS 323 presentation 1 - Incorrect Question 6 0/2 pts Since 2009 Mike has contributed $30,000 to his Roth IRA. Now the Roth IRA has grown to $50,000. Mike (35 years old now) wants to withdraw $20,000 from the Roth IRA to buy his first home. Which of the following statement is true? Mike does not need to pay income tax or 10% penalty on $20,000 withdrawal because this is his contribution The first $10,000 withdrawal is free of income tax and penalty for first time homebuyers. However, Mike needs to pay 10% penalty on the additional $10,000 withdrawal Mike needs to pay both income tax and 10% penalty on $20,000 withdrawal. Mike needs to pay income tax on $20,000 withdrawal, but no 10% penalty

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students