In 2016, Jessica Retired at the Age of 65

Multiple Choice

In 2016, Jessica retired at the age of 65. The current balance in her traditional IRA was $200,000. Over the years, Jessica had made $20,000 of nondeductible contributions and $60,000 of deductible contributions to the account. If Jessica receives a $50,000 distribution from the IRA, what amount of the distribution is taxable?

A) $0
B) $5,000
C) $37,500
D) $45,000
E) $50,000