Lars withdrew $20,000 from a retirement account and used the money to buy a new car.Assuming that his marginal rate on ordinary income is 28%,compute the tax cost of the withdrawal in each of the following cases.
a.Lars is 40 years old.He withdrew the money from a personal savings account.
b.Lars is 40 years old.He withdrew the money from his employer-sponsored qualified plan after resigning from his job.
c.Lars is 65 years old.He withdrew the money from a Roth IRA.

Question

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The Answer of Lars withdrew $20,000 from a retirement account and used the money to buy a new car.Assuming that his marginal rate on ordinary income is 28%,compute the tax cost of the withdrawal in each of the following cases.
a.Lars is 40 years old.He withdrew the money from a personal savings account.
b.Lars is 40 years old.He withdrew the money from his employer-sponsored qualified plan after resigning from his job.
c.Lars is 65 years old.He withdrew the money from a Roth IRA.

Lars Withdrew $20,000 from a Retirement Account and Used the Money