Jane, age $45,$ has contributed $$1,000$ each year to a Roth IRA, beginning with an initial payment of $$500$ on December$31$st five years ago. She wants to know when the soonest she could begin making qualified distributions. Which one ofthese statements represent what you should tell her?

Question $8$Answer

a$.$

Qualified higher education expenses are one of the reasons a withdrawal may bea qualified distribution.

b$.$

Any distribution she takes after January $1$st this year, will meet the five$-$yearrequirement.

c$.$

After December $31$st of last year, the five years will have elapsed, and theabsolute earliest she could begin making qualified distributions would when shereaches age $59.$

d$.$

Any distributions for medical expenses in excess of $7\mathrm{.}5\%$ would qualify as a tax$-$free distribution after satisfying the five$-$year holding period even if she has notattained age $59.$