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What is the taxable amount of essie's distribution from the roth 401(k) plan?

a. $0
b. $5,530
c. $9,470
d. $15,000

User Khawar
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1 Answer

1 vote

Final answer:

The taxable amount of a Roth 401(k) distribution is typically $0 if the distribution is qualified, meaning the account holder is at least 59½ years old and the account has been open for five years. Without details on age, account duration, and distribution characteristics, the exact taxable amount for Essie cannot be determined.

option a is the correct

Step-by-step explanation:

The taxable amount of Essie's distribution from the Roth 401(k) plan depends on several factors including her age, the amount of time the Roth 401(k) has been open, and whether the distributions are qualified or not.

Assuming the plan qualifies, Roth 401(k) distributions are generally tax-free if the owner is at least 59½ years old and the account has been open for at least five years.

If these conditions are met, the taxable amount would be $0. However, without specific information on Essie's age, the time the account has been open, and the details of the distribution, it is not possible to definitively answer the question.

User Jaleel
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