1. Mary and Tab Parker ask you if there is any penalty for taking money out of their traditional 401 (k) plans to go on vacation since they both work long hours and are both turning 50 this year. How would you communicate to the Parkers the effect of taking this distribution? There is no penalty because their combined age is greater than 59 1/2 There is no penalty since they are still currently working They will not owe a penalty on the amount they withdraw as long as they continue to contribute to their 401 (k) plans during the next tax year They will owe a penalty for early distribution and the distribution amount would also be added to their ordinary income