Jamie is 42 years old and received a 20000 distribution from

Jamie is 42 years old and received a $20,000 distribution from his Roth IRA, established in 2009. At the time of the distribution, the Roth IRA account totaled $33,378: $ 18,000 regular contributions, $10,000 taxable conversion contributions made in 2014, and $5,748 earnings. How much of his distribution is taxable and subject to the early distribution penalty?

$0 taxable; $0 penalized.

$0 taxable; $2,000 penalized

$0 taxable; $20,000 penalized

$2,000 taxable; $ 2,000 penalized

Solution

ANSWER:-

Jamie is 42 years old, so she has not crossed 59 1/2 age. But she has met 5 years of ROTh IRA.

Thus, the answer will be,

\"$0 taxable, $2,000 penalized\"