Abraham establishes a Roth IRA at age 45 and contributes $5,500 per year for the next 25 years. Assume he meets the income limits during this period. The account balance is now $364,500 ($137,500 contributions, $227,000 earnings). Abraham would like to draw out the entire amount this year. How much tax would Abraham have to pay as a result of this decision?

Question

Quizplus · Accepted Answer

The Answer of Abraham establishes a Roth IRA at age 45 and contributes $5,500 per year for the next 25 years. Assume he meets the income limits during this period. The account balance is now $364,500 ($137,500 contributions, $227,000 earnings). Abraham would like to draw out the entire amount this year. How much tax would Abraham have to pay as a result of this decision?

Abraham Establishes a Roth IRA at Age 45 and Contributes