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 annual contributions 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)$0.
B)$20,000.
C)$30,000.
D)$50,000.

Question

Quizplus · Accepted Answer

Since Daniela established the Roth IRA 10 years ago and since she is now over 59.5 years old, all distributions from the account will be tax-free. Therefore, the answer is $0.

Daniela Retired at the Age of 65