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Arthur, age 32, loses his job in a corporate downsizing. As a result of his...

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Accounting

Arthur, age 32, loses his job in a corporate downsizing. As a result of his termination, he receives a distribution of the balance in his 401(k) account of $20,000 ($25,000 $5,000 Federal income tax withholding) on May 1, 2018. Arthur's marginal tax rate is 24%. a. What effect will the distribution have on Arthurs gross income and tax liability if he invests the $20,000 received in a mutual fund? b. Same as part (a) except that Arthur invests the $20,000 received in a traditional IRA within 60 days of the distribution. c. Same as part (a) except that Dave invests the $20,000 received in a Roth IRA within 60 days of the distribution. d.How could Arthur have received better tax consequences in part (b)?

Please consider the TCJA changes of 2017

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