Hilda has contributed to a Roth IRA for the last several years. She is now in her late sixties and has just retired. She plans to withdraw $3,000 this year from her Roth IRA. If she is in the 25 percent tax bracket, how much tax will she have to pay on her withdrawal?
A) $ 750
B) $1,000
C) $2,250
D) She will not owe any taxes on this withdrawal.

Question

Quizplus · Accepted Answer

Roth IRA withdrawals are tax-free if the account has been open for at least five years and the account owner is at least 59½ years old. Since Hilda has contributed to her Roth IRA for several years and is now in her late sixties, she meets both criteria and will not owe any taxes on her withdrawal.

Hilda Has Contributed to a Roth IRA for the Last