Please answer all questions

1. Thomas, who is 49 years old, received a distribution from his Roth account of his employers 401(k) plan in the amount of $100,000 on August 11th. He has been a participant in the plan for ten years. His adjusted basis in the plan was $600,000 and the fair market value of the account as of August 11 was $1 million. The distribution was for the purpose of buying a Porsche for himself for his birthday. What is the taxable amount of the distribution and any applicable penalty?

a. $0 taxable, $0 penalty because it is a qualified distribution

b. $40,000 taxable, $4,000 tax penalty

c. $40,000 taxable, $0 tax penalty

d. $100,000 taxable, $10,000 tax penalty

2. Colin is 35 years old and inherits an IRA from his mother, who dies prematurely at age 60 in May 2020. Which of the following statements is correct regarding his options for the inherited IRA?

a. Colin does not have to take distributions until he turns 70 years old

b. Colin can rollover the IRA into his own IRA

c. Colin can take out the entire distribution any time within 10 years and avoid all penalties

d. Colin can take distributions over his single life expectancy

3. At what age, is someone able to access the funds in their IRA under a normal distribution retirement scenario?

a. 55

b. 70 1/2

c. 62

d. 59 1/2

4. What is the percentage of penalty an investor pays if they take a withdrawal from their IRA prior to their normal distribution retirement age, not taking into consideration any exceptions?

a. 20%

b. 50%

c. 15%

d. 10%