As part of their divorce decree, Judy, age $44,$ was forced to split her $401($k$)$ with Alex, age $36.$ Alex received a check in April for $$100,000$ from the custodian. Alex put the proceeds into a one$-$year CD account at the local bank. As a result, Alex will

A$)$

not have to pay ordinary income tax on the $$100,000.$

B$)$

not have to pay income tax, but Judy will owe gift tax.

C$)$

have to pay ordinary income tax on the $$100,000$ plus a $10\%$ early withdrawal penalty.

D$)$

have to pay ordinary income tax on the $$100,000.$