55 of 85. McKenna Michaels is a 30-year-old single taxpayer who changed jobs during the year. When she left her first job, she decided to take total distribution from the 401(k) plan she had established with her former employer. This was not a COVID-19-related distribution, and she did not qualify for any hardship or disaster- related exceptions. She used the proceeds to make a down payment on a new car. McKenna's only other income was from wages, and her 2021 taxable income was $54,650, placing her in the 22% tax bracket. In early 2022, she received the following Form 1099-R reporting the distribution she took from her former employer's retirement plan. What amount, if any, will McKenna need to pay for the additional tax on early distributions? (Answer choices are below the image.) PAYER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. STATE BANK AND TRUST 801 WASHINGTON STREET YOUR CITY, YS XXXXX XXX-555-0055 PAYER'S TIN XX-XXXXXX RECIPIENT'S TIN XXX-XX-XXXX RECIPIENT'S name MCKENNA MICHAELS Street address (including apt. no.) 3501 CAMPBELL STREET CORRECTED (if checked) OMB No. 1545-0119 1 Gross distribution 10,000.00 2a Taxable amount $10,000.00 2b Taxable amount not determined 2021 Form 1099-R Total distribution 3 Capital gain (included in 4 Federal income tax box 2a) withheld 2,000.00 5 Employee contributions/ 6 Net unrealized Designated Roth contributions or insurance premiums appreciation in employer's securities Distribution code(s) 1 RA 8 Other SEP SIMPLE 6] Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. Copy B Report this income on your federal tax return. If this form shows federal income tax withheld in box 4, attach this copy to your return. This information is % being furnished to the IRS. City or town, state or province, country, and ZIP or foreign postal code 9a Your percentage of total 9b Total employee contributions YOUR CITY, YS XXXXX % $ distribution 10 Amount allocable to IRR within 5 years 11 1st year of desig. 12 FATCA filling Roth contrib. 14 State tax withheld $ requirement 15 State/Payer's state no. 16 State distribution YS/ Account number (see instructions) 2345678901 Form 1099-R $0 $200 $1,000 $2,200 Mark for follow up 13 Date of payment 17 Local tax withheld 18 Name of locality 19 Local distribution www.irs.gov/Form1099R Department of the Treasury - Internal Revenue Service OneDrive Screenshot saved The screenshot was added to your