What amount of the distribution is taxable for jessica

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Problem 1: Jessica retired at age 65. On the date of her retirement, the balance in her traditional IRA was $220,000. Over the years, Jessica had made $22,000 of nondeductible contributions and $70,000 of deductible contributions to the account. If Jessica receives a $70,000 distribution from the IRA on the date of retirement, what amount of the distribution is taxable?

Option 1: $0.
Option 2: $7,000.
Option 3: $52,500.
Option 4: $63,000.
Option 5: $70,000.

Reference no: EM132990327

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