Question
Travis, single and age 72, retired from Peanut Industries in 2020. Over the years, Travis had investments in both traditional IRAs and Roth IRAs. In
Travis, single and age 72, retired from Peanut Industries in 2020. Over the years, Travis had investments in both traditional IRAs and Roth IRAs. In addition to IRAs, Travis signed up to receive social security starting January 1, 2021. During 2021, Travis received $30,000 in social security payments, $20,000 in Traditional IRA distributions, and $5,000 in interest from a US Treasury bond. He decided not to take distributions from his Roth IRA in 2021.
Required: Determine how much Travis has in adjusted gross income from the abovementioned transactions and whether he should have taken a Roth distribution.
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