Jessica Retired at Age 65

Multiple Choice

Jessica retired at age 65. On the date of her retirement, the balance in her traditional IRA was $206,000. Over the years, Jessica had made $20,600 of nondeductible contributions and $63,000 of deductible contributions to the account. If Jessica receives a $56,000 distribution from the IRA on the date of retirement, what amount of the distribution is taxable?

A) $0.
B) $5,600.
C) $42,000.
D) $50,400.
E) $56,000.