Question

Which of the following is true about future qualified distributions from a Roth IRA by a person who will be 65 years old at the time the distributions begin? Assume the individual opened the account before age 60.

The entire amount of the distribution will be taxable

The entire amount of the distributions will be tax-free.

Only the accumulated earnings will be tax-free.

Only the previous contributions will be tax-free.

Answer 1

Which of the following is true about future qualified distributions from a Roth IRA by a person who will be 65 years old at the time the distributions begin? Assume the individual opened the account before age 60.

Answer : The entire amount of the distributions will be tax-free.

Explanation :

1. You can withdraw your Roth IRA contributions at any time.

2. Any earnings you withdraw are considered "qualified distributions" if you're 59½ or over and the account is at least five years old, making them tax- and penalty-free.

3. Here in the given case, the person age is above 59 1/2 and the account is for atleast five years old .

Therefore the entire amount of the distributions will be tax free.