Max Retired in 2014 at Age 62

question 73

Multiple Choice

Max retired in 2014 at age 62.During the year he received distributions of $12,000 from his IRA.He made nondeductible contributions of $30,000 to the IRA in prior years and has never received a nontaxable distribution.As of December 31,2014,the value of his IRA was $250,000.Calculate the nontaxable portion of Max's distribution.

• A) $1,374.
• B) $1,440.
• C) $10,560.
• D) $10,626.

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Definitions:

Combining Form

In linguistics, especially in the formation of compound words, a morpheme that is used in combination with another form to create a new word or term.

Poison

Substances that cause harm, illness, or death when ingested, inhaled, or absorbed into the body in sufficient quantities.

Toxin

A harmful substance produced within living cells or organisms; can cause disease when introduced into the body tissues.

Toxic/o

A prefix meaning "poison," used in medical terminology to refer to substances that are harmful or deadly.