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Business, 13.06.2020 04:57 lailabirdiemae

Kevin currently has $3,097 vested in his former employer's (DeVitt Consulting) 401(k) plan. He can either 1) withdraw this money and use it as he wishes or he can 2) roll it over into a rollover IRA. If Kevin withdraws the money and does not roll it over into an IRA, how much money would he have left after paying the early withdrawal penalty and federal income taxes? If Kevin rolled the 401(k) money into an IRA, how should the transaction be handled so that he could avoid the 20% federal withholding on rollovers? What would you recommend him to do with this money? 10 pts

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Kevin currently has $3,097 vested in his former employer's (DeVitt Consulting) 401(k) plan. He can e...
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