Question 33 19 points) Mr. Reid was very active and loved to go skiing. Unfortunately, he was prone to skiing through the trees and did not believe in helmets. In March of 2019, he skied into a large pine tree that abruptly ended his life. At that time, his Roth IRA contained regular contributions of $10,000, first made in 2017, a conversion contribution of $40,000 that was made in 2016, and earnings of $10,000. He never made any distributions from his IRA. When he established this Roth IRA (his first) in 2016, he named each of his two children, Bill and Phil, as equal beneficiaries. Each child will receive one-half of each type of contribution and one-half of the earnings. Which of the following is true regarding a distribution after Mr. Reid. dies? If Bill immediately takes out all $30,000 from the Roth IRA, the entire distribution will be characterized as ordinary income. If Phil immediately takes out all $30,000 from the Roth IRA, the entire distribution will not be taxable because it is a qualified distribution from a Roth IRA. If Bill immediately takes out all $30,000 from the Roth IRA $5,000 of the distribution will be characterized as ordinary income, but he will not have to pay the penalty. If Phil immediately takes out all $30.000 from the Roth IRA, he will have a penalty of $2,500, in addition to paying income tax on the earnings. O