Adam received a Form $1099-$R with a distribution code $1$ in box $7.$ How should Adam's distribution be treated for tax purposes?SELECT ONEaThe distribution should be treated as a rollover.The distribution is a normal distribution and is not subject to a penalty.CThe distribution is subject to a $10\%$ penalty unless the taxpayer qualifies for an exception that is not known to the payer.d The distribution is an early distribution, but the payer is aware of an exception to the penalty.