Abraham Establishes a Roth IRA at Age 45 and Contributes

question 36

Essay

Abraham establishes a Roth IRA at age 45 and contributes $5,500 per year for the next 25 years. Assume he meets the income limits during this period. The account balance is now $364,500 ($137,500 contributions, $227,000 earnings). Abraham would like to draw out the entire amount this year. How much tax would Abraham have to pay as a result of this decision?

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Definitions:

Emotional Health

A state of well-being where an individual recognizes their own abilities, can cope with the normal stresses of life, work productively, and is able to make contributions to their community.

Tightness in the Chest

A physical sensation of constriction or pressure within the thoracic region, often associated with cardiac or respiratory conditions.

Signs of Grief

Observable expressions or behaviors associated with the emotional response to loss, including sadness, anger, and withdrawal.

Predictable

Capable of being foreseen or declared in advance.