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 $90,000 to her account. If Daniela receives a $60,000 distribution from the Roth IRA, what amount of the distribution is taxable?
A)$0.
B)$27,000.
C)$33,000.
D)$60,000.

Question

Quizplus · Accepted Answer

Since Daniela established the Roth IRA 10 years ago and has already paid taxes on her contributions, any qualified distributions (withdrawals made after the age of 59 1/2) are tax-free. Therefore, the full $60,000 distribution is not taxable.

Daniela Retired at the Age of 65