Which of the following statements regarding Roth IRAs 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. A nonqualified distribution is not subject to tax to the extent it is from the taxpayer's contributions to the account.

Which of the Following Statements Regarding Roth IRAs Distributions Is