Mindy who is 44 years old has money in an ex employer profit sharing 401(k) plan. On January 12 of this year she did a direct rollover of $40,000 into a Roth IRA account and $100,000 into a traditional IRA account. On March 25 of this year she took a distribution of $20,000 from her IRA account. On May 20 of this year she rolled in $20,000 into her IRA account. Which of the following statements is correct with respect to the tax liability that Mindy created through all of this? Mindy owes tax and penalty on the $20,000 because it represents her second rollover during the year Mindy owes ordinary income tax on $40,000, but no penalty Mindy owes tax and penalty on $40,000 The $20,000 rollover qualified for the 60-day rollover exception Mindy who is 44 years old has money in an ex employer profit sharing 401(k) plan. On January 12 of this year she did a direct rollover of $40,000 into a Roth IRA account and $100,000 into a traditional IRA account. On March 25 of this year she took a distribution of $20,000 from her IRA account. On May 20 of this year she rolled in $20,000 into her IRA account. Which of the following statements is correct with respect to the tax liability that Mindy created through all of this? Mindy owes tax and penalty on the $20,000 because it represents her second rollover during the year Mindy owes ordinary income tax on $40,000, but no penalty Mindy owes tax and penalty on $40,000 The $20,000 rollover qualified for the 60-day rollover exception