In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000 on the loan and her account had a balance of $45,000 without regard to the loan. She requested a total distribution from the account. How much will be withheld from the distribution for the tax? $0 $7,000 $7,800 $9,000
In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000 on the loan and her account had a balance of $45,000 without regard to the loan. She requested a total distribution from the account. How much will be withheld from the distribution for the tax? $0 $7,000 $7,800 $9,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter11: Individuals As Employees And Proprietors
Section: Chapter Questions
Problem 33P
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![In 2019, Chana took a $10,000 loan
from her employer-sponsored
qualified retirement plan. When she
separated from her employer in 2021,
she still owed $6,000 on the loan and
her account had a balance of $45,000
without regard to the loan. She
requested a total distribution from the
account. How much will be withheld
from the distribution for the tax?
$0
$7,000
$7,800
$9,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fac92dbf6-898b-4a56-aeb2-f055afd4d544%2F4d015e74-83c5-4299-a936-3ae77341afee%2Fdkbgps_processed.jpeg&w=3840&q=75)
Transcribed Image Text:In 2019, Chana took a $10,000 loan
from her employer-sponsored
qualified retirement plan. When she
separated from her employer in 2021,
she still owed $6,000 on the loan and
her account had a balance of $45,000
without regard to the loan. She
requested a total distribution from the
account. How much will be withheld
from the distribution for the tax?
$0
$7,000
$7,800
$9,000
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