Max Retired in 2014 at Age 62

question 58

Multiple Choice

Max retired in 2014 at age 62.During the year he received distributions of $9,000 from his IRA.He made nondeductible contributions of $20,000 to the IRA in prior years and has never received a nontaxable distribution.As of December 31,2014,the value of his IRA was $150,000.Calculate the taxable portion of Max's distribution.

• A) $0.
• B) $1,132.
• C) $7,868.
• D) $9,000.

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