Hilda Has Contributed to a Roth IRA for the Last

question 42

Multiple Choice

Hilda has contributed to a Roth IRA for the last several years. She is now in her late sixties and has just retired. She plans to withdraw $3,000 this year from her Roth IRA. If she is in the 25 percent tax bracket, how much tax will she have to pay on her withdrawal?

• A) $ 750
• B) $1,000
• C) $2,250
• D) She will not owe any taxes on this withdrawal.

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Definitions:

Standard Deviation

An indicator of the spread or fluctuations in a data set, showing the degree to which the data points deviate from the average value.

Parameter

A numerical characteristic of a statistical population, such as a mean or standard deviation, that describes some aspect of the population.

Simple Random Sample

A sample in which each member of the population has an equal chance of being selected.

Finite Population

A population set that contains a countable number of individuals or observations.