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Ryan, Age 48, Received an $10,200 Distribution from His Traditional

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Essay

Ryan, age 48, received an $10,200 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?


Definitions:

Delivery Times

The duration it takes for goods or services to be delivered from when an order is placed to when it is received by the customer.

Random Sample

A subset of a statistical population where each member has an equal chance of being chosen.

Variability

The measure of how spread out or scattered the points in a data set are.

Average Ages

The mean age of a group of individuals, calculated by summing their ages and dividing by the number of individuals.

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