Max retired in 2015 at age 62. During the year he received distributions of $9,000 from his IRA. He made nondeductible contributions of $20,000 to the IRA in prior years and has never received a nontaxable distribution. As of December 31, 2015, the value of his IRA was $150,000. Calculate the taxable portion of Max's distribution.
Distributions from a traditional IRA:
A) Are fully taxable if the IRA was entirely funded with deductible contributions.
B) Are always fully taxable.
C) Are always nontaxable.
D)Are fully taxable if the IRA was entirely funded with nondeductible contributions.
Regarding withdrawals from a Roth IRA:
A) There are minimum withdrawal requirements for a Roth IRA.
B) Roth IRA withdrawals are taxable if made after the five-tax-year period beginning with the first tax year in which a Roth contribution was made.
C) Roth withdrawals are deemed to first come from contributions followed by earnings.
D)Withdrawals that fail to meet the five-year holding period requirement are not taxable to the extent they do not exceed earnings.
Regarding a Coverdell Education Savings Account:
A) Distributions are tax-free to the beneficiary if they are used for his or her qualified education expenses.
B) Qualified education expenses include required tuition, fees, books, supplies, and equipment at an eligible educational institution.
C) Qualified expenses must be reduced by scholarships or other tax-free income.
D)All of these.