Lucy a widow passes away at age 67 leaving her daughter age 42 as the beneficiary of her traditional IRA. What does the daughter have to do with the IRA funds under the current IRS regulations?

a) cash out the account and pay income taxes and the 10% penalty on the income recieved

b) cash out the account and pay only income taxes on the income recieved

c) retitle the IRA as an inherited IRA and take distributions based on Lucy's life expectancy

d) retitle the IRA as an inherited IRA and take distributions over the stated maximum years