Question $26vv$ of $100$

$2h$:$27m$:$14s$

Michael, a $49-$year$-$old mechanic, has a traditional IRA that he contributes to on a regular basis. He has deducted all of his contributions. Michael decides to buy himself a brand new motorcycle so he takes a $$5,000$ distribution from his traditional IRA to make the down payment. Which of the following is true?

Michael is allowed to take the withdrawal, without penalty, since the IRA is not an employer sponsored plan.

Michael will owe a $$500$ penalty, and must include the amount of the distribution in taxable income.

Michael will pay a penalty for early withdrawal, but only if he doesn't repay the money to the IRA within one year.

Michael can't take a distribution from his IRA at all since he isn't at least $59\mathrm{.}5$ years old.