Which statement about distributions from Roth IRAs and designated Roth accounts
ID: 2756848 • Letter: W
Question
Which statement about distributions from Roth IRAs and designated Roth accounts within employer-sponsored retirement plans is FALSE?
A)Distributions can be rolled over from one Roth IRA to another and from one designated Roth account to another.
B)Distributions from Roth IRAs and designated Roth accounts must be taken when the owner reaches age 70½.
C)A qualified distribution can be taken after the five-year period beginning with the first tax year a contribution to a Roth IRA or designated account was made.
D)Distributions from Roth IRAs follow an order of contributions, then conversions, and then earnings, while distributions from designated Roth accounts combine contributions and earnings.
Explanation / Answer
A qualified distribution is generally a distribution that is made after 5 years of taxable period,the 5 taxable period begins with the first day of the taxable year for which you first made the contribution to a Roth IRA or designated account therefore C)A qualified distribution can be taken after the five-year period beginning with the first tax year a contribution to a Roth IRA or designated account was made.is TRUE.
A)Distributions can be rolled over from one Roth IRA to another and from one designated Roth account to another. is TRUE.Distributions can be rolled over from one Roth IRA to another but Distributions can be rolled over from one designated Roth account to another through direct rollover.
D)Distributions from Roth IRAs follow an order of contributions, then conversions, and then earnings, while distributions from designated Roth accounts combine contributions and earnings.is TRUE
The Roth IRAs are not subject to minimum required distributions even when the owner reaches age 70½ until after the death of the owner,but the designated Roth accounts are subject to minimum required distributions when the owner reaches age 70½.Therefore B)Distributions from Roth IRAs and designated Roth accounts must be taken when the owner reaches age 70½. is FALSE.
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