Mia Contributed $100,000 to a Roth IRA

question 27

Multiple Choice

Mia contributed $100,000 to a Roth IRA. She retired at age 61 and would like to withdraw the funds. She is in the 15% federal marginal tax bracket. How much will she pay in income taxes on the funds?

• A) $15,000.
• B) $15,000 plus a 10% penalty.
• C) $12,500.
• D) $0.

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Definitions:

Unreasonable Risk

A hazard or danger that surpasses what is considered acceptable or safe under the circumstances.

National Priority List

A list in the United States under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) identifying hazardous waste sites eligible for long-term remedial action financed under the federal Superfund program.

Federal Insecticide, Fungicide, and Rodenticide Act

A United States law that regulates the distribution, sale, and use of pesticides to protect human health and the environment.

Pesticide Residue

The traces of chemicals that remain on or in crops, fruits, vegetables, and soil after pesticide application, which can pose health risks.