Question

Frank established a Roth IRA at the age of 25 and contributed a total of $131,244 to it over 38 years. The account is now worth $376,000. How much of these funds can Frank withdraw tax-free

Answer 1

Answer:

$376,000

Explanation:

Because Frank satisfies the five-year holding period requirement for a Roth IRA. Now he is over age 59 1/2 at the time of the distribution. Now he met the AGI limitations at the time of his contributions and that is why all of the funds may be withdrawn tax-free.  

The account is now worth $376,000 is the funds can Frank withdraw tax-free is  $376,000