12 What is the first year in which a single taxpayer age 54

12, What is the first year in which a single taxpayer, age 54 in 2016, could receive a qualified ade his first $3,500 contribution to the Roth IRA on distribution April 1, 2017, for the tax year 2016? from a Roth IRA if he m a. 2019. b. 2020. 2021. d. 2022.

Solution

The correct answer is c.

A qualified distribution can only occur after a five-year period has occurred and is madeon or after the date on which the owner attains age 59½, made to a beneficiary or theestate of the owner on or after the date of the owner’s death, attributable to the owner’sbeing disabled, or for a first-time home purchase. The five-year period begins at thebeginning of the taxable year of the initial contribution to a Roth IRA. The five-yearperiod ends on the last day of the individual’s fifth consecutive taxable year beginningwith the taxable year described in the preceding sentence. Therefore, the first year inwhich a qualified distribution could occur is 2021