huxley's (60) and elise (45) strted the process on adopting Elwood (15) on May l, 2020. On July 6, 2020 Huxley took a $5,000 distribution from his 40l (k). On September 24, 2020, Elise took a $5,000 distrib from her IRA. What is the tax treatment

Huxley's distibution is not taxable or jubjset to the early distrib penalty. Elise's distrib

Huxley's distribution is taxable and not subject to the early distribution penalty. Elise's distribution is taxable

Huxley's distribution is taxable and subject to the early distribution penaltiy.. Elise's distribution is taxable and not subject