Formula to calculate the gross-up withdrawal amount to include the IRA 10% penalty and the tax on distribution.

[The Real Halloween]

TP wants to receive an early distribution of $16,000 and he is subject to 10% penalty ($1,600) and his marginal tax rate is 24% ($3,840).
What is the gross-up amount TP needs to liquidate in order for him to get $16,000, to withhold 10% penalty ($1,600) and 24% tax ($3,840)?

Thanks for your time and advice.

[sjrcpa]

$24,242.

10% penalty $2,424

24% tax $5,818.

[The Real Halloween · Accepted solution]

Awesome! @sjrcpa Thanks a lot!

[George4Tacks]

@The Real Halloween How did you manage to pick your own thank you as a solution?
@sjrcpa gave the solution to the Algebra problem of:
X - .1X - .24 X = $16,000 and you snub her is two ways!
(a) you did not click the thumbs up for her attempt at answering and (b) you ignore the fact that that she and not you gave the correct answer.
I fear there shall be no happy Halloween for me this year.

[The Real Halloween]

@George4Tacks 

Apologies! My intention is to click solution for @sjrcpa's awesome answer.  It was definitely not my solution.  it was all hers.  Sorry to have clicked the wrong button and to have provoked you to such a response.  I have no intention to snub her at all!

[George4Tacks]

Look at the ... where you selected the answer. It allows and option to change your mind. My reaction was that you were sloppy in your action. Doing income tax requires some precision and sloppiness leads to some bad results. You have been on the forum long enough, that you should not be exhibiting this sloppiness. 

Sorry if I offended you - it was not you - it was your actions. 

P.S. If you are the Real Halloween,  why is your avatar a bunny? There are many better images that you could use. 

[joshuabarksatlcs]

OMG... Now everybody's a critic.  LOL.  I think BobKamman and I started all this negative spirit.  For that, I apologize to everyone here - for Bob...

No worries New Halloween.  You just taught me two things. 

1.  How to get my 1,000,000-solutions badge.     

2.  I used to think I come here only for kicks and drama.  Now I recognize I come here for kicks, drama and the 1,000,000-solutions badge. 

[George4Tacks]

More bourbon!!!

[George4Tacks]

https://www.youtube.com/watch?v=VqomZQMZQCQ

[IRonMaN]

Halloween - I’m sure Susan Is just crushed that you “stole” the solution from her😉.  Believe it or not you are not the first person to do that, although you might be the first holiday to have accomplished that feat😁.  Whenever I see that happen I always smile thinking how well Intuit has created a foolproof system for its customer base👍🏻

Edit - for the record, I have done that deed a couple of times to make a point of how silly it is for someone to be able to pat themselves on the back (for those that do it intentionally)

[sjrcpa]

I got over it pretty quickly.

[abctax55]

Susan, I got a silly 'solve' the other day...& you posted the best answer (Or someone else did..)  I'll transfer it to you if I can 😍

[The Real Halloween]

@sjrcpa @abctax55 @IRonMaN @George4Tacks @joshuabarksatlcs Interesting to see the energy generated here. Stay safe and healthy everyone !!

[IRonMaN]

"Interesting to see the energy generated here"

I'm guessing it was George's jack-o-lantern that drew us in 😉