In 2014, Jessica Retired at the Age of 65

question 97

Multiple Choice

In 2014, Jessica retired at the age of 65. The current balance in her traditional IRA was $200,000. Over the years, Jessica had made $20,000 of nondeductible contributions and $60,000 of deductible contributions to the account. If Jessica receives a $50,000 distribution from the IRA, what amount of the distribution is taxable?

• A) $0
• B) $5,000
• C) $37,500
• D) $45,000
• E) $50,000

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Definitions:

Emergency Department

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Iron Supplement

A dietary supplement used to increase the level of iron in the body, typically used to treat or prevent iron-deficiency anemia.

Simultaneously

Occurring, operating, or done at the same time.

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