Mindy, who is $44$ years old, has five IRAs. On January $12$th$,$ she converts $$20,000$ in IRA $2,$ which is a traditional IRA, into a Roth IRA. On March $25$th$,$ she takes a distribution of $$40,000$ from IRA $1.$ On May $20$th$,$ she rolls over the $$40,000$ into IRA $4.$ Which of the following statements is correct?