Mark for follow up Question 55 of 75. In 2018, Kanji converted $7,175 from his traditional IRA to a Roth IRA. There were no nondeductible contributions made to the traditional IRA. In 2021, when the value of the Roth IRA had grown to $8,350, Kanji, then ac withdrew the entire balance. What is the tax treatment of this distribution? The distribution is not included in income and there is no penalty. Only the $1,175 in earnings is included in income, but there is no penalty on the earnings distribution. Only the $1,175 in earnings is included in income and there is a 10% penalty on the earnings distribution. None of the distribution is included in income, but there is a 10% tax penalty on the entire distribution. Mark for follow up