Which of the following statements regarding Roth IRA distributions is true?
A)A distribution is not a qualified distribution unless the distribution is at least two years after the taxpayer has opened the Roth IRA.
B)A taxpayer receiving a distribution from a Roth IRA before reaching the age of 55 is generally not subject to an early distribution penalty.
C)A Roth IRA does not have minimum distribution requirements.
D)The full amount of all nonqualified distributions is subject to tax at the taxpayer's marginal tax rate.

Question

Quizplus · Accepted Answer

A Roth IRA does not have minimum distribution requirements. Option A is incorrect because for a distribution to be qualified, the taxpayer must hold the Roth IRA for at least five years and be age 59½ or older, or meet certain other exceptions. Option B is incorrect because a taxpayer receiving a distribution from a Roth IRA before reaching the age of 59½ may be subject to an early distribution penalty, unless an exception applies. Option D is incorrect because only the earnings portion of nonqualified distributions is subject to tax at the taxpayer's marginal rate, not the entire distribution.

Which of the Following Statements Regarding Roth IRA Distributions Is