Jeremy, Age 38, Has $25,000 in a Traditional IRA Account

question 108

Essay

Jeremy, age 38, has $25,000 in a traditional IRA account and is considering taking the money out to buy himself a new car. What will be the tax consequences to Jeremy if he withdraws the $25,000 from his IRA in 2019 for this purpose? Explain.

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Definitions:

Anicteric

Referring to a condition or phase of a disease, especially hepatitis, in which jaundice (yellowing of the skin and eyes) is not present.

An-

Prefix used in various words to denote without, lacking, or absent, often in medical and scientific terminology.

Eupnea

Normal, good, unlabored breathing.

Eu-

A prefix meaning good, well, advantageous, or normal in the context of medical terminology.