How much money will he have after taxes if he withdraws all the money from the account?

In summary, Carlos, who is 60 years old and in the 32% marginal tax bracket, has $544,000 in his Roth IRA. If he withdraws all the money from the account, he will have $369,920 after taxes. There may be discrepancies with the expected answer due to formatting or rounding.
  • #1
bap902
26
0

Homework Statement


Carlos is 60 years old, is in the 32% marginal tax bracket, and has $544,000 in his Roth IRA. How much money will he have after taxes if he withdraws all the money from the account?


Homework Equations


(1-tax bracket)x(amount)=earnings after income tax

The Attempt at a Solution


I did (1-.32)(544000)=369920, but I know that's not the right answer. What am I doing wrong?
 
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  • #3
Mark44 said:
How do you know that's not the right answer?

It's a homework problem on a web-based program that tells you whether or not you are right.
 
  • #4
I hate those things! Assuming your formula is correct, your answer is completely correct. Perhaps the web based program is expecting the answer as "$369,920" and is counting it wrong because of either the missing "$" or the missing ",".
 
  • #5
They could also be expecting an answer rounded to the nearest $0.01, not the nearest $1.
 

Related to How much money will he have after taxes if he withdraws all the money from the account?

1. What is the formula for calculating taxes on a withdrawal from an account?

The formula for calculating taxes on a withdrawal from an account varies depending on the specific tax laws and rates in the individual's location. Generally, it involves multiplying the withdrawal amount by the applicable tax rate.

2. How much money will be taken out for taxes when withdrawing all funds from an account?

The amount of taxes taken out when withdrawing all funds from an account will depend on the individual's tax bracket and the amount of the withdrawal. Higher income individuals typically have a higher tax rate, so they will have a larger amount taken out for taxes.

3. Are there any deductions or exemptions that can lower the amount of taxes on a withdrawal?

Yes, there may be deductions or exemptions that can lower the amount of taxes on a withdrawal. These can include deductions for charitable contributions or exemptions for certain types of income.

4. Will the amount of taxes on a withdrawal be the same for everyone?

No, the amount of taxes on a withdrawal will vary for each individual depending on their specific tax situation. Factors such as income level, filing status, and deductions can all impact the amount of taxes owed on a withdrawal.

5. How can someone find out the exact amount of taxes they will owe on a withdrawal from their account?

The exact amount of taxes owed on a withdrawal can be determined by consulting with a tax professional or using online tax calculators. These resources can take into account individual factors and provide a more accurate estimate of the taxes owed.

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