Mary establishes a Roth IRA at age 50 and contributes the maximum amount per year to the Roth IRA for 15 years. The account is now worth $199,000, consisting of $75,000 in contributions plus $124,000 in accumulated earnings. How much can Mary withdraw tax-free?

Question

Quizplus · Accepted Answer

Mary can withdraw the entire $199,000 tax-free because she is over 59½ and has held the Roth IRA for more than 5 years, meeting the requirements for tax-free qualified distributions.

Mary Establishes a Roth IRA at Age 50 and Contributes