On March 30,2013,Rodger (age 56) was let go from his employer of 30 years due to rough economic times.During his 30 years of employment,Rodger contributed $300,000 to his traditional 401(k) account.When Rodger was let go,his 401(k) account balance was $900,000 (this included both employer matching and account earnings) .Rodger immediately withdrew $40,000 to use as an emergency savings fund.What amount of tax and early distribution penalties must Rodger pay on the $40,000 withdrawal if his ordinary marginal tax rate is 28 percent?

Question

Quizplus · Accepted Answer

The Answer of On March 30,2013,Rodger (age 56) was let go from his employer of 30 years due to rough economic times.During his 30 years of employment,Rodger contributed $300,000 to his traditional 401(k) account.When Rodger was let go,his 401(k) account balance was $900,000 (this included both employer matching and account earnings) .Rodger immediately withdrew $40,000 to use as an emergency savings fund.What amount of tax and early distribution penalties must Rodger pay on the $40,000 withdrawal if his ordinary marginal tax rate is 28 percent?

On March 30,2013,Rodger (Age 56) Was Let Go from His