Ryan, Age 48, Received an $11,800 Distribution from His Traditional

question 157

Essay

Ryan, age 48, received an $11,800 distribution from his traditional IRA to pay for medical expenses (above the 7.5% of AGI floor). Ryan has made only deductible contributions to the IRA and his marginal tax rate is 28 percent. What amount of taxes and early distribution penalties will Ryan be required to pay on the distribution, assuming the distribution is not a coronavirus-related distribution?

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Definitions:

Scent Trail

A path marked by the smell left by the passage of an animal or person, often used by animals for navigation and hunting.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Natural Behavior

The instinctual or innate actions and reactions of an animal or human, not influenced by conscious thought or societal norms.

Inclusive Fitness

A concept in evolutionary biology that considers an individual's success in passing genes to the next generation, including through relatives.