Cassandra, Age 33, Has Made Deductible Contributions to Her Traditional

question 156

Essay

Cassandra, age 33, has made deductible contributions to her traditional IRA over the years. When the balance in her IRA was $40,000, Cassandra received a distribution of $34,000 from her IRA in order to purchase a new car. How much of the $34,000 distribution will she have remaining after paying income taxes and early distribution penalties on the distribution? Her marginal tax rate is 25 percent.

---

Definitions:

Communication Problems

Challenges or barriers in the exchange of information between individuals, which can lead to misunderstandings and conflicts.

Preservation

The act of maintaining something in its original or existing state to prevent decay or destruction.

Ritualistic Behavior

Actions performed in a prescribed way, often for religious or cultural reasons, that follow a set pattern or ritual.

Resistant Children

Children who show opposition or struggle to adapt to changes or new environments, often as a behavioral response.