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Kathy establishes a Roth IRA 20 years ago In 2021 the account is now worth 249000 consisting of 100000 in contributions plus 149000 in accumulated

Kathy establishes a Roth IRA 20 years ago In 2021 the account is now worth 249000 consisting of 100000 in contributions plus 149000 in accumulated earnings How much can she withdraw tax-free in 2021. 

Assuming she satisfies the five-year holding period for a Roth IRA and is 62 12 at the time of the distribution.

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Kathy uses the IRSs Roth IRA spreadsheet to find out 249000 249000 x 20 0 tax due The spreadsheet figures that Kathy can withdraw up to 400000 taxfree ... blur-text-image

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