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In 2011, Wayne Reuter at age 74. He immediately began taking qualified distributions from his Roth...

In 2011, Wayne Reuter at age 74. He immediately began taking qualified distributions from his Roth IRA to fund his needs. In total, he withdrew $23,000 in 2015. How much of Wayne’s 2015 distributions from his Roth IRA must be included in his taxable income that year?
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Answer #1

23000,

As par IRA or 401(k) to a Roth IRA are subject to a five-year waiting period to avoid a penalty.One rule that investors often do not realize is that you must have owned your Roth IRA for five years in order to withdraw earnings tax free during retirement.Calculation of 5 year start from 1st jan 2011 to jan 2016 end of 5 year. A withdrawal that is made before the five-year time frame is complete will trigger a 10 percent penalty for an early withdrawal.

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