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.
$100.00

$250.00

$150.00

$25.00

Answer 1

So out of the amount in your account you have $10,000.

You get charged a 10% fee if you withdraw before you are 59.5 (you did, you were 48).

So, they are going to charge a 10% fee of the $2,500.

10% of $2,500 is...

Your Answer:
$250