Chris, age 30, contributed $3,000 to a Roth IRA three years ago before withdrawing $4,000 to pay for his tuition to an MBA program this year. How much of the $4,000 will he need to report as ordinary income and how much will be subject to a 10% early withdrawal penalty? 

Answer rating: 100% (QA)

Chris will need to report the earnings portion of the withdrawal as ordinary income and the penalty ... View the full answer