Penny, age 52, takes a distribution of $30,000 from her Traditional IRA account. She plans to deposit it in an IRA with a different bank. Shortly after the distribution she drives her car through the front window of her credit union in a freak accident,
and uses the funds to pay for the damages. What income and/or penalties related to the failure to rollover the IRA must she show on her tax return ?
Penny must report the full $30,000 distribution as income in her income tax return and pay tax on it. In addition, since she is not yet 59 ½ years old, she must pay a 10 percent penalty of $3,000 due to the failure to rollover the IRA.
You might also like to view...
When facilitating group decision making, a project manager should identify a problem in terms of its alternate solutions so that team members can more easily reach a decision on how to solve the problem.
Answer the following statement true (T) or false (F)
What evidence is utilized by the auditor for analytical purposes in substantiating the completeness of the allowance for bad debt estimate?
a. Accounts receivable aging schedule. b. Copies of checks received from customers. c. Confirmations returned without exception. d. Stock prices of customer companies.
The goal of sales presentation is not simply to make the sale but to create a strong value proposition that will lead to a mutually beneficial long-term relationship.
Answer the following statement true (T) or false (F)
Which of the following is FALSE about constructing and analyzing decision trees?
a. Begin the tree with initial decision to be made. b. Expand the tree. c. Evaluate the tree without further expanding it. d. Analyze the tree and make a decision.