Daniela retired at the age of 65. The current balance in her Roth IRA is $200,000. Daniela established the Roth IRA 10 years ago. Through a rollover and annual contributions Daniela has contributed $83,000 to her account. If Daniela receives a $53,000 distribution from the Roth IRA, what amount of the distribution is taxable?
Daniela retired at the age of 65. The current balance in her Roth IRA is $200,000. Daniela established the Roth IRA 10 years ago. Through a rollover and annual contributions Daniela has contributed $83,000 to her account. If Daniela receives a $53,000 distribution from the Roth IRA, what amount of the distribution is taxable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Daniela retired at the age of 65. The current balance in her Roth IRA is $200,000. Daniela established the Roth IRA 10 years ago. Through a rollover and annual contributions Daniela has contributed $83,000 to her account. If Daniela receives a $53,000 distribution from the Roth IRA, what amount of the distribution is taxable?
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Introduction
Roth IRA can be defined as a retirement account for individuals which offers tax-free withdrawals of earnings after the age of 59.50 years. Roth IRA is one of the best ways of saving money for the retirement period. It offers investment in different forms of securities like stock, debt, mutual funds, etc.
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