Bob, who is $58$ years old, made his first contribution to a Roth IRA four years ago. His total contributions equal $$28,000.$

Bob decides he wants to payoff his house as he nears retirement. He plans to use the $$35,000$ in his Roth IRA. What do

you advise Bob are the tax consequences of this potential distribution?

$$28,000$ contribution $-$ no tax; no penalty

$$7,000$ earnings $-$ no tax, no penalty

$$28,000$ contribution $-$ no tax, no penalty

$$7,000$ earnings $-$ taxable, no penalty

$$28,000$ contributiton $-$ no tax, $10\%$ penalty

$$7,000$ earnings $-$ taxable, no penalty

$$28,000$ contribution $-$ no tax $10\%$ penalty

$$7,000$ earnings $-$ taxable, $10\%$ penalty