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Rayna, age 51, takes a $35,000 distribution from her traditional IRA to pay qualified education expenses for her friend's daughter, Jade, who is attending an
Rayna, age 51, takes a $35,000 distribution from her traditional IRA to pay qualified education expenses for her friend's daughter, Jade, who is attending an eligible educational institution. Jade's total educational expenses are $35,000, and she received a nontaxable scholarship of $5,000. How much of Rayna's distribution is subject to the 10% additional tax?
$0
$10,000
$30,000
$35,000
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