Heidi Has Contributed $20,000 in Total to Her Roth 401(k)

question 63

Multiple Choice

Heidi has contributed $20,000 in total to her Roth 401(k) account over a six year period.In 2013,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)$0
• B)$10,000
• C)$12,000
• D)$18,000
• E)$30,000

---

Definitions:

Vessel Members

Specialized cells that form part of the xylem vessels in plants, involved in the transport of water and nutrients.

Lignin

Material that strengthens cell walls of vascular plants.

Stomata

Small openings on the surfaces of plant leaves and stems that facilitate gas exchange.

Vascular Tissue

Specialized tissue in plants that is responsible for the transport of water and nutrients throughout the plant body.