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

question 3

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

---

Definitions:

Personality Traits

Enduring characteristics or qualities that define an individual’s behavior in a wide range of circumstances.

Impression Management

The process through which people try to control the perceptions others have of them.

Personal Bonds

The relationships or connections formed between individuals based on trust, affection, or common interests.

Conscientiousness

The trait of being responsible, dependable, and careful.