Mr.Thano,age 47,withdrew $22,000 from his employer-sponsored qualified retirement plan to pay for his daughter's wedding.Compute the tax cost of the withdrawal if Mr.Thano has a 28% marginal tax rate on ordinary income.

Question

Quizplus · Accepted Answer

The tax cost of the withdrawal would be equal to the withdrawal amount multiplied by the marginal tax rate. 
The tax cost in this case would be:

$22,000 x 0.28 = $6,160

Therefore, the correct answer is (C) $8,360.

MrThano,age 47,withdrew $22,000 from His Employer-Sponsored Qualified Retirement Plan to Pay