1. Mary establishes a Roth IRA at age 50 and contributes the maximum amount per year to the Roth IRA for 15 years. The account is now worth $199,000, consisting of $75,000 in contributions plus $124,000 in accumulated earnings. How much can Mary withdraw taxfree
a. 
$0 

b. 
$75,000 

c. 
$199,000 

d. 
$124,000 
2. Brenda travels from Chicago to Barcelona (Spain) on business. She is gone 10 days during which time she spends 7 days conducting business and 3 days sightseeing. Her expenses are $1,500 (airfare), $200 per day (meals), and $400 per night (lodging). What is Brenda’s deduction for airfare, meals and lodging?
a. 
$5,000 

b. 
$4,550 

c. 
$5,250 

d. 
$4,200 
Answer1:
Option C is the correct answer.
Explanation:
Assuming that Mary meets the income limitation at the time of the contributions to the Roth IRA, all of the funds may be withdrawn taxfree. She satisfies the fiveyear holding period for a Roth IRA and is over age 59 1/2 at the time of the distribution.
Answer2:
Option C is the correct answer.
Explanation:
Airfare ($1,500*70%) =  $ 1,050 
Meals ($200*7 days) =  1,400 
Lodging ($400*7 days) =  2,800 
Total deduction  $ 5,250 
Get Answers For Free
Most questions answered within 1 hours.