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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 (not a coronavirus-related distribution). 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.
Mixed Numbers
A number consisting of an integer and a fraction, used to represent quantities greater than a whole but less than two wholes.
Lowest Terms
Lowest terms refer to a fraction that has been simplified to its smallest possible integer numerator and denominator.
Fractions
Fractions represent parts of a whole or any number of equal parts, typically written with a numerator and a denominator, separated by a slash.
Acres
A unit of land area measurement used in the U.S. customary and imperial systems, equal to 43,560 square feet or about 4,047 square meters.
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