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Chelsea Ann is single, age 35 and wants to make a contribution to an IRA for the year ended December 31, 2022. She is an active participant in a retirement plan by her employer Her for 2022 $139,000 before considering any IRA contribution Read the requirements

The excess over the Roth contributions is includible in her gross income and also subject to the 10% withdrawal penalty The total withdrawal is taxable and also subject to the 10% withdrawal penalty The total withdrawal is taxable but is not subject to the 10% withdrawal penalty The total withdrawal is tax free This is not a qualified distribution because Chelsea Ann is not age 591/2 and does not meet any of the other requirements This is a qualitied distribution because Chelsea Ann meets one of the other requitements Under the special ordering rules for nonqualified distribution, the distribution is tax.free to the extent of her Roth contributions Chelsea Aan is single, age 35 and wants 10 make a contribution to an IRA for the year ended December 31,2022 . Sho is an active participant in a qualifed retirement plan sponso by her employer Her AGI for 2022 is $139000 before considering any IRA contribution Requirement a. What type of IRA if any, is Chelsea Ann eligble to make a contribution to for 2022 ? If she is aligible to contribute to an IRA, what is the maximum amount that she the nearest whole dollar Fer 2022 Clielsear Ann is eligole to mako as deduchile contribution to a tradtlonal IRA Sbe is eligble to make comirowion to a Roth IRA and a 5 Hohestian An mondeductble contribution to a tratisional IRA Alernatively. tradeional IRA , she can centributes to a nondeductible Requirement b. Assume Cheises Ann contributos a sotal of $12000 over sox yoars to a Roth IRA in 2026 she witherws 517000 to pay of her car loan Her financial adviscr Chelsea Anh wants to verity thir accuracy of ther advisor's advice. What would be the tax consequences of this withdrawal? atubel. The excess over the qualified distribution is first treated as from contributions and is nontaxable to that extent The first $10,000 is treated as a qualified distnbution and is therefore not taxable The fotal withdrawal is taxable and also subject to the 10% withdrawal penalty The total withdrawal is taxable but is not subject to the 10% withdrawal penalty The lotal withdrawal is tax free. In able to deduct all in 2022 . What are th. ie year of the rollower lover lequences in 2022 Requirements a. What type of IRA, if any, is Chelsea Ann eligible to make a contribution to for 2022 ? If she is eligible to contribute to an IRA, what is the maximum amount that she can contribute to the IRA? b. Assume Chelsea Ann contributes a totat of $12,000 over six years to a Roth IRAIl In 2028 , she withdraws $17,000 to pay off her car loan. Her financial advisor suggested she withdraw the money from the IRA for two major reasons: (1) to eliminate her debt and (2) no tax would be due on distributions from a Roth IRA after five years. Chelsea Ann wants to verify the accuracy of her advisor's advice. What would be the tax consequences of this withdrawal? Alternatively, what if Chelsea Ann withdrew the $17,000 to purchase a house (she is a first-time homebuyer)? c. Alternatively to Part b above, assume Chelsea Ann has a traditional deductible IRA that has a balance of $75,000. She has been able to deduct all of her contributions to the IRA in prior years. Her financial advisor has recommended that she rollover the funds from her traditional IRA to a Roth IRA in 2022. What are the tax consequences of this rollover in 2022 ? Alernatively, what i Chelsea Avin withdiew the $17,000 to purchase a house (she is a first time homebuyen)? Atematively, if the $17,000 was used to purchaso a house, the tax consequences of this withdrawal are as follows is elect all consequences that apply if an input Seld b not usa in the lable leave the inpuit fleld ompty: do not select a tabel? corsequencess of this rotioverin 2022

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