Question
Juanita, age 62, retired in 2018. During the year, she received distributions of $9000 from her IRA. She made nondeductible contributions of $20,000 to the
Juanita, age 62, retired in 2018. During the year, she received distributions of $9000 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.
The answer to this question is $7,868. My work takes me too --> $150,000/260=576.9 nontaxable amount 9,000-576.9= does not equal $7,868. Am I calculating this correctly.
Answer choices are:
a) 1,132
b) 7,800
c) 7,868
d) 9,000
Paul
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