Question

Carolyn has been contributing to a pre-tax retirement account. Her youngest child is ready to start college, and Carolyn wants to withdraw $61,671.71 from the account for tuition. Carolyn's tax bracket this year is 25%, and she knows she will have to pay a 10% early withdrawal penalty. How much money will she pay in taxes and penalty ?

Answer 1

Answer: 77,089.64 or 83,256.81

Explanation:

Either or because it doesnt specify is she has to pay 10% and 25% or 10% early and 15% later on. If you know then the lower answer is 10% now and 15% later on. GL!