In 2015,Janelle converted $10000 from her Traditional IRA to a Roth IRA. in 2018, Janelle, then age 47, took $2500 distribution from the Roth IRA. The value of the Roth IRA at the time was $11000. What is the tax treatment of this distribution? 1. None of the distribution is included in income, BUT there is a 10% tax penalty on the entire distribution. 2. Th distribution is NOT included in income and there is NO penalty. 3.Only the $1000 in earnings is included in income, but there is NO penalty on the earnings distribibution