Question 8 • Mathematics for Data and Financial Literacy
A 60 -year-old individual nearing retirement withdraws $15,000 from their traditional IRA to pay for college expenses for their dependent child. What are the taxes and penalties on this withdrawal?
Answer
A
1 dollars comma 500 penalty and no taxes
B
no penalty and taxed as ordinary income
C
1 dollars comma 500 penalty and taxed as ordinary income