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In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000

In 2019, Chana took a $10,000 loan from her employer-sponsored qualified retirement plan. When she separated from her employer in 2021, she still owed $6,000 on the loan and her account had a balance of $45,000 without regard to the loan. She requested a total distribution from the account. How much will be withheld from the distribution for the tax?

$0

$7,000

$7,800

$9,000

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