Question
suppose you invest $10,000 at the age of 40, and agree to start receiving payments at the age of 50. at age 48, you decide you want to withdraw $2500 from your account. what is the IRS fee you will have to pay? remember, the IRS charges 10% if you withdraw before you are 59.5
A. $100.00
B. $25.00
C.$150.00
D. $250.00
A. $100.00
B. $25.00
C.$150.00
D. $250.00
Answers
GPT-4o mini
If you withdraw $2,500 from your retirement account before the age of 59.5, you will incur a 10% penalty from the IRS.
To calculate the penalty:
1. Determine 10% of the amount withdrawn:
\[
10\% \text{ of } 2500 = 0.10 \times 2500 = 250
\]
So, the IRS fee you will have to pay is $250.
The correct answer is **D. $250.00**.
To calculate the penalty:
1. Determine 10% of the amount withdrawn:
\[
10\% \text{ of } 2500 = 0.10 \times 2500 = 250
\]
So, the IRS fee you will have to pay is $250.
The correct answer is **D. $250.00**.