Juanita, age 62, retired in 2018. During the year, she received distributions of $9,000 from her IRA.

Question:

Juanita, age 62, retired in 2018. During the year, she received distributions of $9,000 from her IRA. She made nondeductible contributions of $20,000 to the IRA in prior years and has never received a nontaxable distribution. As of December 31, 2018, the value of her IRA was $150,000. Calculate the taxable portion of Juanita’s distribution.

a. $1,132

b. $7,800.

c. $7,868.

d. $9,000.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamentals Of Taxation 2019

ISBN: 9781260158670

12th Edition

Authors: Ana M. Cruz Dr., Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone

Question Posted: