tyson (62 years old) owns a traditional ira with a current balance of $50,000. the balance consists of $30,000 of deductible contributions and $20,000 of account earnings. tyson's marginal tax rate is 25 percent. convinced that his marginal tax rate will increase in the future, tyson receives a distribution of the entire $50,000 balance of his traditional ira. he retains $12,500 to pay tax on the distribution and he contributes $37,500 to a roth ira five days after the distribution. what amount of income tax and penalty must tyson pay on this series of transactions?
