Mia contributed $100,000 to a Roth IRA. She retired at age 61 and would like to withdraw the funds. She is in the 15% federal marginal tax bracket. How much will she pay in income taxes on the funds?

Question

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Withdrawals from a Roth IRA are tax-free if the account has been open for at least five years and the account holder is at least 59½ years old. Since Mia is 61 and assuming the account has been open for at least five years, she will pay $0 in income taxes on the funds.

Mia Contributed $100,000 to a Roth IRA