Claire has contributed to a Roth IRA for the last several years. She is now in her late sixties and has just retired. She plans to withdraw $3,000 this year from her Roth IRA. If she is in the 25 percent tax bracket, how much tax will she have to pay on her withdrawal?
A) $ 750
B) $1,000
C) $2,250
D) She will not owe any taxes on this withdrawal.

Question

Quizplus · Accepted Answer

The Roth IRA does not offer an up-front tax advantage when the contributions are made. The advantage of this newest IRA is that the withdrawals of earnings from the Roth IRA are tax-free.

Claire Has Contributed to a Roth IRA for the Last