Roger converted all $100,000 in his Traditional IRA to his Roth IRA on December 1, 2014. Of which $20,000 of the amount converted was his adjusted basis. Roger included $80,000 ($100,000 - $20,000) in his gross income on his Form 1040 in 2014 for the Roth conversion. On April 5th, 2018, Roger made a regular contribution of $5,000 to a Roth IRA for the 2017 year. Roger took a $150,000 distribution from his Roth IRA on July 31^st, 2018 to purchase a once-in-a-lifetime trip around the world vacation for his 61st birthday present to himself. How is the $150,000 distribution taxed if the value of the account just before the distribution equals $200,000?

a. The distribution is tax free and penalty free.

b. The distribution is not subject to tax, but he will have to pay a penalty of $4,500.

c. $45,000 of the distribution is taxable but there is no penalty.

d. $150,000 of the distribution is taxable and there is a penalty of $15,000.

e. $150,000 of the distribution is taxable but there is no penalty.