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Question 31 (9 points) Phillip, who is currently age 52, made his only contribution to his Roth IRA in 2019 for $6,000. If he were
Question 31 (9 points) Phillip, who is currently age 52, made his only contribution to his Roth IRA in 2019 for $6,000. If he were to receive a total distribution of $11,000 from his Roth IRA in the year 2024 to purchase a new car, how would he be taxed? Since Phillip waited five years, the distribution will be classified as a "qualified distribution" and will, therefore, not be taxable or subject to the 10% early distribution penalty. Since Phillip waited five years, the distribution will be classified as a "qualified distribution" and will, therefore, not be taxable but will be subject to the 10% early distribution penalty. Although Phillip waited five years, the distribution will not be classified as a "qualified distribution" and will therefore, be taxable and will be subject to the 10% early distribution penalty. Although Phillip waited five years, the distribution will not be classified as a "qualified distribution and will, therefore, be taxable to the extent of earnings and will be subject to the 10% early distribution penalty on the amount that is taxable
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