Jerry is single and $49$ years old and has a traditional individual retirement account $($IRA$)$ that contains $$700,000.$ His daughter, Edwina, was accepted to NYU upon graduating from high school. Jerry had not planned for this and needs to draw $$60,000$ per year out of his IRA to help pay for Edwina$$s schooling. He plans to withdraw $$20,000$ to be used for her dorm and $$40,000$ to be used for the tuition and fees at NYU. What are the tax consequences of the withdrawal from the IRA?

Required: Prepare a rough draft of a memorandum $($using proper tax memorandum form$)$ for the tax files documenting your research and conclusion.