Question

Monica has a Roth IRA to which she contributed $15,000. The IRA has a current value of $37,500. She is 54 years old and takes a distribution of $25,000. How much of the distribution will be taxable to Monica? Group of answer choices

Answer 1

$10,000

Step-by-step explanation:

Monica has a Roth IRA in which she contributed $15,000

The IRA has a current value of $37,500

Monica is 54 years old

She takes a distribution of $25,000

Therefore, the amount of distribtion that will be taxable can be calculated as follows

Amount of taxable distribution= $25,000-$15,000

= $10,000

Hence the amount of distribution that will be taxable to Monica is $10,000