Question

Mary has a Roth IRA held more than 5 years to which she has contributed $30,000. The IRA has a current value of $62,000. Mary is 55 years old and she takes a distribution of $38,000. How much of the distribution will be taxable to Mary?

Answer 1

distribution will taxable to Mary = $8,000

Step-by-step explanation:

given data

contributed = $30,000

current value = $62,000

distribution = $38,000

age = 55 years old

solution

when requirement is satisfy so withdrawals from a Roth IRA is tax free

so here distribution will be taxable to Mary as

distribution will taxable to Mary = $38,000 - $30,000

distribution will taxable to Mary = $8,000