In 2018, Felicia started a Roth IRA with a $10,000 contribution. In 2021, Felicia, then age 47, took a $2,500 distribution from the Roth IRA. The value of the Roth IRA at the time was $11,000. What is the tax treatment of this distribution? None of the distribution is included in income, BUT there is a 10% tax penalty on the entire distribution. The distribution is NOT included in income and there is NO penalty.