Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account is now worth $112,000. Assu

Question

3 years ago

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Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account is now worth $112,000. Assu

me that Jimmy meets the income limitation at the time of the contributions.How much of these funds may Jimmy withdraw tax-free?

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1 answer:

ValentinkaMS [17] · Answer 1 · 2022-06-03T10:24:32+03:00

Answer: $112,000

Explanation:

Jimmy is able to withdraw the entire $112,000 tax-free.

This is because to be able to Withdraw tax-free, one must have deposited money in the IRA for a minimum of 5 years and the person must be at least 59.5 years of age.

Those 2 criteria are met by Jimmy who deposited for 18 years and is now aged 65.