What Would Be the Difference in the Tax Consequences of an $18,000

question 90

Essay

What would be the difference in the tax consequences of an $18,000 withdrawal from a Roth IRA versus a Traditional IRA if $15,000 represents long-term capital gains,$2,000 short-term capital gains,and $1,000 is interest? Assume a tax rate of 30 percent and a capital gains tax rate of 10 percent.
(a)$5,200 more in taxes with a Traditional IRA
(b)$4,800 more in taxes with a Traditional IRA
(c)$5,400 more in taxes with a Traditional IRA
(d)$5,400 more in taxes with a Roth IRA

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Definitions:

Culture Production System

The organized network of institutions and processes that produce cultural products such as music, literature, and art.

Cultural Gatekeeper

Individuals or organizations that have the power to control the flow of information and cultural materials to the public.

Creative Subsystem Member

An individual within an organization who is specifically involved in the creation and development of ideas, products, or advertising, contributing to the innovative output of the entity.

Culture Production Systems

are the frameworks and industries involved in creating, distributing, and promoting cultural products and meanings, such as music, art, and literature.