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.

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Definitions:

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A class of drugs commonly used as antidepressants in the treatment of major depressive disorder, anxiety disorders, and some personality disorders.

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A genetic disorder causing intellectual disability, behavioral challenges, and characteristic physical features.

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A rare inherited disorder that increases the levels of a substance called phenylalanine in the blood, leading to intellectual disability and other health issues unless managed by diet from an early age.

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An essential amino acid found in the human body used by the body to produce proteins and other important molecules, which is obtained through the diet.