Heather,age 67,retired in 2016.During the year she received distributions of $14,000 from her IRA.She made nondeductible contributions of $40,000 to the IRA in prior years and has never received a nontaxable distribution.As of December 31,2016,the value of her IRA was $250,000.Calculate the taxable portion of Heather's distribution and her tax basis in the IRA after the distribution that she will carry forward to 2017.

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The Answer of Heather,age 67,retired in 2016.During the year she received distributions of $14,000 from her IRA.She made nondeductible contributions of $40,000 to the IRA in prior years and has never received a nontaxable distribution.As of December 31,2016,the value of her IRA was $250,000.Calculate the taxable portion of Heather's distribution and her tax basis in the IRA after the distribution that she will carry forward to 2017.