Ralph Has a $130,000 IRA with the Red Association

question 52

Essay

Ralph has a $130,000 IRA with the Red Association.For personal reasons,he decides to move his funds to the Blue Association.He requests that his funds be distributed to him on August 20,20xx.
a.What amount will Ralph receive from the Red Association?
b.What is the last day Ralph can deposit the funds from the Red Association and avoid taxation in the current year?
c.If the funds were distributed from a qualified retirement plan (not an IRA),how much would Ralph receive?
d.Assuming the funds were distributed from a qualified retirement plan,not an IRA,how much will Ralph have to contribute to the Blue Association to avoid taxable income and any penalties?

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Definitions:

Misrepresentation

Misrepresentation is the providing of false or misleading information that induces another party to enter into a contract, potentially leading to legal consequences.

Duress

Duress refers to a situation where a person performs an act as a result of violence, threat, or other pressures against them, which can invalidate any agreement made under such conditions.

Non Est Factum

A legal defense claiming a signed agreement is invalid because the signer was unaware of its true nature due to a mistake or misrepresentation.

Assignee

A person to whom rights or property is legally transferred.