Over the past 4 years, Annabelle, age 28, has contributed a total of $20,000 to a...

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Over the past 4 years, Annabelle, age 28, has contributed a total of $20,000 to a Roth IRA. The current balance is $25,000. S

business accounting

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Answer 1

Answer #1

c.$0.

since the amount withdrawn is less than total contributions made till date.

i.e $15,000 is withdrawn but the contribution made till date is $20,000.

None of the withdrawal will be taxable.

However if an amount more than $20,000 is withdrawn the excess amount will be taxable, since 5 years have not lapsed since the beginning of investment.

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Answer 2

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