Heidi, Age 45, Has Contributed $20,000 in Total to Her

question 41

Multiple Choice

Heidi, age 45, has contributed $20,000 in total to her Roth 401(k) account over a six-year period. When her account was worth $50,000 and Heidi was in desperate need of cash, Heidi received a $30,000 nonqualified distribution from the account. How much of the distribution will be subject to income tax and 10% penalty?

• A) $30,000.
• B) $0.
• C) $12,000.
• D) $10,000.
• E) $18,000.

---

Definitions:

Operations

The day-to-day activities involved in running a business, producing goods, or providing services, focusing on efficiency and effectiveness of the process.

Internal Locus

The belief that individuals control their own destiny and outcomes are primarily the result of their own efforts.

Trust Instincts

Reliance on one's innate intuition or feelings in making decisions, especially in situations where complete information is not available.

Personality

The combination of characteristics or qualities that form an individual's distinctive character.