Question

When Miles separated from service with his former employer, he had a $10,000 outstanding balance in an employer plan loan. He received a total distribution of $30,000 without regard to the loan. The check he received was for $14,000. Mandatory withholding was $6,000. How much of the distribution is taxable

Answer 1

taxable distribution is $30000

Step-by-step explanation:

given data

outstanding balance = $10,000

total distribution = $30,000

check he received = $14,000

withholding = $6,000

solution

we know here outstanding balance is given $10000 in employ plan loan

so total they received as net of loan outstanding here is $30000

so that total benefit here $30000

that is eligible for the purpose

hence here taxable distribution is $30000