Max Retired in 2016 at Age 62

question 118

Multiple Choice

Max retired in 2016 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 31,2016,the value of his IRA was $250,000.Calculate the nontaxable portion of Max's distribution.

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

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Definitions:

Group Polarization

The phenomenon where a group of individuals tends to make decisions that are more extreme than the initial inclination of its members.

Approval

The act of accepting or consenting to something, often given formally or officially.

Learner

An individual who is acquiring knowledge or skill through study, experience, or being taught.

Delivering Shock

An experimental method often used in psychological research to study obedience or the impact of punishments on behavior.