Mindy, who is 44 years old, has five IRAs. On January 12th, she converts $40,000 in IRA 2 , which is a traditional IRA, into a Roth IRA. On March 25th, she takes a distribution of $20,000 from IRA 1. On May 20th, she rolls over (adds) $20,000 to IRA 2. Which of then following statements is correct? Mindy owes tax and penalty on $40,000 Mindy owes tax and penalty on the $20,000 because it represents her second rollover during the year. The $20,000 rollover qualifies for the 60 -day rollover exception. Mindy owes ordinary income tax on $60,000, but no penalty. Mindy will owe tax on $40,000 however no early withdrawal penalty The $20,000 rollover qualifies for the 60-day rollover exception. Mindy owes tax and penalty on $40,000 Mindy will owe tax on $40,000 however no early withdrawal penalty Mindy owes tax and penalty on the $20,000 because it represents her second rollover during the year. Mindy owes ordinary income tax on $60,000, but no penalty