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