Lisa,age 45,needed Some Cash So She Received a $50,000 Distribution

question 2

Multiple Choice

Lisa,age 45,needed some cash so she received a $50,000 distribution from her Roth IRA.At the time of the distribution,the balance in the Roth IRA was $200,000.Lisa established the Roth IRA 8 years ago.Through a rollover and annual contributions,she has contributed $80,000 to her account.What amount of the distribution is taxable and subject to early distribution penalty?

• A)$0
• B)$20,000
• C)$30,000
• D)$50,000

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Definitions:

Paycheck

A paper document or electronic transfer issued by an employer to pay an employee for services rendered.

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Simplified representations of complex economic processes used to predict and analyze economic behaviors and outcomes.

Rational Behavior

Decision-making behavior that is consistent with logical or sensible choice, aiming to maximize personal advantage in terms of utility or profit.