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Mrs Lee, Age 70, Withdrew $40,000 from Her Traditional IRA

Question 1

Multiple Choice

Mrs. Lee, age 70, withdrew $40,000 from her traditional IRA this year. The balance in the account at year-end was $96,600, which included $28,000 of nondeductible contributions. Compute the taxable portion of the $40,000 withdrawal.


A) $0
B) $8,199
C) $31,801
D) $40,000

Correct Answer:

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