Xijia establishes a Roth IRA at age 34 and contributes the maximum amount per year to the Roth IRA for 32 years.The account is now worth $282,000,consisting of $128,000 in contributions plus $154,000 in accumulated earnings.How much can Xijia withdraw tax free in 2010?

Question

Quizplus · Accepted Answer

Xijia can withdraw the entire $282,000 tax-free because Roth IRA contributions and earnings can be withdrawn tax-free after age 59½, and Xijia has contributed for 32 years starting at age 34, making them at least 66 years old.

Xijia Establishes a Roth IRA at Age 34 and Contributes