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On December 31, 2021, when she turned age 40, individual K withdrew $50,000 from her Roth 5401(k). Her Roth 5401(k) had a $200,000 balance
On December 31, 2021, when she turned age 40, individual K withdrew $50,000 from her Roth 5401(k). Her Roth 5401(k) had a $200,000 balance immediately before the withdrawal. Since starting her Roth 5401(k) in 1999, K had contributed $100,000, and the Roth 5401(k) had grown to $200,000 through $100,000 of earnings while in the account. B. What amount (if any) of K's $50,000 distribution on December 31, 2021 from her Roth 401(k) is recognized as taxable income? C. What amount (if any) of K's $50,000 distribution on December 31, 2021 from her Roth $401(k) will be subject to the 10% early distribution penalty? Now assume everything same as above, except K's account is a Roth IRA (not a Roth 5401(k))? C. What amount (if any) of K's $50,000 distribution on December 31, 2021 from her Roth IRA is recognized as taxable income? D. What amount (if any) of K's $50,000 distribution on December 31, 2021 from her Roth IRA will be subject to the 10% early distribution penalty?
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