Math Problem
Sep 16, 2017 12:30:47 #
James Slick
Loc: Pittsburgh,PA
repleo wrote:
0.82X = 6400
X = 6400/.82 = 7804.88
Fess up Jerry ! You are thinking of ordering a D850 and a couple of lenses!!!
X = 6400/.82 = 7804.88
Fess up Jerry ! You are thinking of ordering a D850 and a couple of lenses!!!
Sep 16, 2017 14:01:31 #
Sep 16, 2017 16:03:15 #
johneccles wrote:
I cannot understand why you have to pay 18% tax on your own money. If I withdrew money from my bank account I would get what I asked for. When I went to buy an item with that money I would pay the amount required and the tax would be already included in the price, so no more tax is required.
The money originally deposited into the account was deducted from the OP's taxable income, and grew tax free until withdrawn, therefore it is now considered taxable income. And, as another said, IF the OP is below a certain age, there could be additional penalties involved, too.
The idea was to encourage workers, when they were - are - younger & in a 'higher tax bracket' to add to a retirement fund, with pre-tax money, and reduce their tax liability then knowing that income tax would be due on withdrawal.
I hope this makes a bit of sense to you.
Sep 16, 2017 18:26:45 #
Jerry Coupe
Loc: Kent, WA
If the money is withdrawn from a tax deferred investment account (a 401(K) for example) then federal income tax and probably state income tax would be due on the amount withdrawn. By dividing the required amount by 1 minus the tax rate you come up with the required withdrawl to cover both the tax due and the amount desired. Also, if you are less than 59 1/2 years old there would be an additional 10% penalty for early withdrawl.
On the other hand, if the money is withdrawn from a savings account of certificate of deposit then there probably is no additional tax due.
Hope this helps.
On the other hand, if the money is withdrawn from a savings account of certificate of deposit then there probably is no additional tax due.
Hope this helps.
Sep 16, 2017 18:29:12 #
rfmaude41
Loc: Lancaster, Texas (DFW area)
johneccles wrote:
I cannot understand why you have to pay 18% tax on your own money. If I withdrew money from my bank account I would get what I asked for. When I went to buy an item with that money I would pay the amount required and the tax would be already included in the price, so no more tax is required.
It is stated that it is a retirement account !!!!
"Let's say you want to withdraw $6400 from a retirement account"
Sep 16, 2017 18:49:23 #
( 1 + .18)(6400) = 7552 is the amount needed to get the 6400 plus the tax. This assumes it is the 6400 that is taxed. But if the tax is on the amount neded to yield 6400, then the equation becomes (1 - .18)A = 6400, so 6400/(1 - .18) = A = 7804.87804878 . IRS will bill you for the .008 which rounds to 1 cent in government terms. If the account has a series of inputs and outputs over a period of time, you see how those fraction of pennies can add to dollar bills.
Sep 16, 2017 22:21:42 #
jerryc41 wrote:
I could get that, too, but not with an equation.
Spot on!
Sep 17, 2017 00:36:57 #
I also got $7804.88. I did not actually set up a formula--just realized that only 82% of the amount had to equal $6400.
David
David
Sep 18, 2017 13:48:19 #
I was born September 1952. My son was born September 1982. Ten years later, I was 40 and my son was 10. I was 4 times older than him. Five years later, I was 45 and he was 15. I'm now only 3 times older than him. 2010 I turned 60 and he turned 30. Now I'm only twice as old as him. How long before we're the same age?
I love Abbot and Costello math!
I love Abbot and Costello math!
Sep 18, 2017 21:09:14 #
Better yet! Tell them your medically ill and need the money for care, when tax time comes you get the tax and penalty back. Of course you might go to prison, but hey, it's all expenses paid, 3 meals a day, color tv and pool because it's Federal not State, a roof over your head, and all the sex you can stand. The bad guys call it Club Med!
Sep 19, 2017 20:51:56 #
Tikva wrote:
x-(18/100x)= 6400
82x = 640000
x=640000/82
x=7,804.88
82x = 640000
x=640000/82
x=7,804.88
You saved me from writing this all out, yes, I came up with $7804.88 also!
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