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 $80,000 to her account. If Daniela receives a $50,000 distribution from the Roth IRA, what amount of the distribution is taxable?

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8 May, 19:27

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 $80,000 to her account. If Daniela receives a $50,000 distribution from the Roth IRA, what amount of the distribution is taxable?

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Francis Maddox · Answer 1

The correct answer to the following question is $0.

Explanation:

A Roth IRA can be said as a kind of individual retirement plan (which is a qualified retirement plan), which accrues gain tax exempt but uses after tax dollars to provide fund. Here the contribution are not deductible, but an option of tax saver's credit, which can range from 10% to 50% of contribution, which depends upon the person's income and life situations. As of 2019, any individual can make an annual contribution up to $6000, in to his or her Roth IRA.