Lisa, age 45, needed some cash so she received a $50,000 distribution from her Roth IRA.At the time of the distribution, the balance in the Roth IRA was $200,000.Lisa established the Roth IRA eight years ago.Through a rollover and annual contributions, she has contributed $80,000 to her account.What amount of the distribution is taxable and subject to early distribution penalty?

Question

Quizplus · Accepted Answer

Since Lisa is over the age of 59 1/2 and has had the Roth IRA for at least five years, the distribution is both tax-free and penalty-free. Therefore, the answer is A) $0.

Lisa, Age 45, Needed Some Cash So She Received a $50,000