Question

Alonzo deposited $4800 into a traditional IRA that grew to $9900 at his

retirement. If Alonzo is currently in the 25% tax bracket and is 75 years old,how much tax will he have to pay when he withdraws the entire $9900?

A. $1200

B. $3675

c. $0

D. $2475

Answer 1

$2,475

Explanation:

Given that :

Worth of IRA retirement = $9900

Alonzo's tax bracket = 25%

Amount to be paid as tax upon withdrawal :

25% * $9900

0.25 * $9900

= $2,475