Fundamentals of Taxation 2011 4th Edition by Ana Cruz, Debra Prendergast, Dan Schisler, Michael Deschamps

Exercise 27

Matt, age 62, retired in 2010. During the year, he received distributions of $9,000 from his IRA. He made nondeductible contributions of $20,000 to the IRA in prior years and has never received a nontaxable distribution. As of December 31, 2010, the value of his IRA was $150,000. Calculate the taxable portion of Matt's distribution. a. $1,132
B) $7,800.
C) $7,868.
D) $9,000.