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2016 tax return? made deductible contributions to treditional retirement account

ID: 2601139 • Letter: 2

Question

2016 tax return? made deductible contributions to treditional retirement accounts for several years. In 2016, she decides to withdraw $10,000 from one of must report the entre amount of $10.000 O Joan does not have to report anything because she is over age 59 1/2 O Joan does not have to report any amount because the wihrawal was not trom a O Joan must report the d her accounts. Joan is 62 years old. How soes this transaction affect h she recelved but can elect to use the 10 year option Roh IRA Mark for follow up

Explanation / Answer

Answer is Option A

Joan must report entire $10000, because distributions from tradional IRS are treated as ordinar income and income tax is to be paid on the same.