Which of the following statements regarding Roth IRAs distributions is true?
A)A distribution is not a qualifying 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 nonqualifying distributions is subject to tax at the taxpayer's marginal tax rate.

Question

Quizplus · Accepted Answer

Roth IRAs do not have minimum distribution requirements, unlike traditional IRAs. A is false because the two-year holding period only applies to whether the earnings on contributions are tax-free, not to whether a distribution is qualifying or not. B is false because a taxpayer receiving a distribution from a Roth IRA before reaching age 59 1/2 is generally subject to an early distribution penalty unless an exception applies. D is false because only the earnings portion of non-qualifying distributions is subject to tax and penalty, not the full amount.

Which of the Following Statements Regarding Roth IRAs Distributions Is