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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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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