10
QuizMultiple Choice

Retirement Planning — Test

Question 10 • Advanced Financial Algebra

A 50 -year-old salaried employee withdraws $9,000 from their contributions to their Roth IRA, which has been held for 8 years, to pay for a major home renovation. What are the taxes and penalties on this withdrawal?

Answer
A
no taxes or penalties
B
900 dollars penalty and no taxes
C
900 dollars penalty and taxed as ordinary income
D
no penalty and taxed as ordinary income
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