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$5$Q$13$: Serena, who is currently age $48,$ made only one contribution to her Roth IRA in the amount of $$5,000$ six years ago. If she were to receive a total distribution of $$6,500$ from her Roth IRA this year to take a vacation, how would she be taxed?

a$.$ The distribution will not be classified as a qualified distribution, it will be taxable to the extent of earnings, and it will be subject to the $10\%$ early distribution penalty on the taxable amount.

b$.$ The distribution will not be classified as a qualified distribution and will be fully taxable and will be subject to the $10\%$ early distribution penalty.

c$.$ Because Serena waited at least five years, the distribution will be classified as a qualified distribution and will not be taxable or subject to the $10\%$ early distribution penalty.

d$.$ Because Serena waited more than five years, the distribution will be classified as a qualified distribution and will not be taxable, but will be subject to the $10\%$ early distribution penalty.

$5$Q$14$: Sitra, age $47.$ 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 of the following statements represents what you should tell her?

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

b$.$ Any distributions for medical expenses in excess of $7\mathrm{.}5\%$ would qualify as a taxfree distribution after satisfying the five$-$year holding period even if she has not attained age $59(1)/(2).$

c$.$ Qualified higher education expenses are one of the reasons a withdrawal may be a qualified distribution.

d$.$ After December $31$st of last year, the five years will have elapsed, and the absolute earliest she could begin making qualified distributions would when she reaches age $59(1)/(2).$

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