Question

Jacque solis, a 38-year-old, is leaving her current job and would like to take a long vacation before a new job. she has $62,000 in a qualified plan that she would like to live on during this period. if she is in a 25% marginal tax bracket, how much will she have left after paying taxes and penalties? group of answer choices

O $40,300
O $43,500
O $37,700
O $29,000
O $14,500

Answer 1

The correct option is 1. Jacque's remaining amount after paying taxes and penalties on her $62,000 qualified plan will be $40,300.

Step-by-step explanation:

To calculate how much Jacque Solis will have left after paying taxes and penalties on her $62,000 qualified plan, we first need to determine the amount of taxes and penalties she will owe. Since she is in a 25% marginal tax bracket, she will owe 25% of the amount she withdraws from her qualified plan. Additionally, she may also incur a penalty if she withdraws the money before the age of 59 and a half.

Assuming Jacque does not qualify for any exemptions or deductions that would reduce her taxable income, she will owe $15,500 in taxes (25% of $62,000). The penalty for early withdrawal is typically 10%, so she will owe an additional $6,200 (10% of $62,000).

Therefore, the total amount Jacque will owe in taxes and penalties is $21,700 ($15,500 + $6,200). To calculate how much she will have left after paying taxes and penalties, we subtract the total amount owed from her initial $62,000: $62,000 - $21,700 = $40,300.

Therefore, Jacque will have $40,300 left after paying taxes and penalties.