Somerset, age 43, is self-employed and started saving for retirement 8 years ago using a Roth IRA. He liked the idea of someday taking distributions on a tax-free basis. Unfortunately, he has recently run into some business troubles and needs to raise cash quickly. He would like to take a distribution from his Roth IRA immediately. Which of the following statements is true for Somerset? Any distribution will be deemed a return of earnings and principal; this means that his contributions will be subject to tax. while the earnings will be subject to a 10% penalty O Because he is younger than age 59%, any distribution will be subject to a 10% early withdrawal penalty. The distribution is not allowed, unless he is purchasing a new home or paying for a child's education before age 59%. As long as he only takes out his contributions--not the account earnings--the distribution will be tax and penalty free