Max retired in 2015 at age 62. During the year he received distributions of $12,000 from his IRA. He made nondeductible contributions of $30,000 to the IRA in prior years and has never received a nontaxable distribution. As of December 31, 2015, the value of his IRA was $250,000. Calculate the nontaxable portion of Max's distribution.

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The Answer of Max retired in 2015 at age 62. During the year he received distributions of $12,000 from his IRA. He made nondeductible contributions of $30,000 to the IRA in prior years and has never received a nontaxable distribution. As of December 31, 2015, the value of his IRA was $250,000. Calculate the nontaxable portion of Max's distribution.

Max Retired in 2015 at Age 62