Frank established a Roth IRA at age 25 and contributed a total of $131,244 to it over 38 years.The account is now worth $376,000.How much of these funds can Frank withdraw tax-free?
A)$0
B)$131,244
C)$244,756
D)$376,000
E)None of these

Question

Quizplus · Accepted Answer

Roth IRA contributions and earnings can be withdrawn tax-free if the account has been open for at least five years and the owner is at least 59 1/2 years old. Frank meets these conditions, so the entire $376,000 can be withdrawn tax-free.

Frank Established a Roth IRA at Age 25 and Contributed