Daniela retired at the age of 65. The current balance in her Roth IRA is $200,000.Daniela established the Roth IRA 10 years ago. Through a rollover and annualcontributions Daniela has contributed $80,000 to her account. If Daniela receives a$50,000 distribution from the Roth IRA, what amount of the distribution is taxable?
A) $50,000.
B) $20,000.
C) $0.
D) $30,000.

Question

Quizplus · Accepted Answer

Since Daniela established the Roth IRA more than 5 years ago and is over age 59½, any distribution she receives is tax-free and penalty-free. Therefore, the entire $50,000 distribution is not taxable.

Daniela Retired at the Age of 65