Parker, age 48, has a traditional IRA with a balance of $50,000. The $50,000 balance consists of $30,000 of contributions and earnings of $20,000. This year Parker's marginal tax rate is 24%. Parker is convinced that his marginal tax rate will increase in the future. Parker decides to cash out his IRA and receives $50,000 this year. He contributes $40,000 of the $50,000 to a Roth IRA. How much income tax and penalty must Parker pay this year?

Income:

Tax: Penalty: