Which of the following is true about future qualified distributions from a Roth IRA by a person who will be 65 years old at the time the distributions begin? Assume the individual opened the account before age 60.
A)The entire amount of the distributions will be tax-free.
B)Only the accumulated earnings will be tax-free.
C)Only the previous contributions will be tax-free.
D)The entire amount of the distribution will be taxable.

Question

Quizplus · Accepted Answer

Qualified distributions from a Roth IRA are completely tax-free, including both the contributions and the earnings, if the account owner is at least 59 1/2 years old and has held the account for at least 5 years. Therefore, if the individual is 65 at the time of the distributions, and has opened the account before age 60, the entire amount of the distributions will be tax-free.

Which of the Following Is True About Future Qualified Distributions