The taxpayer has a salaried job making $50,000 a year. They know their expected tax liability down to the dollar, that is, until they have to take out $17,500 from their IRA to pay for a down payment on a new home. Being their first home, they are heavily involved in making sure the paperwork is correct, including their expected tax liability. The taxpayer is thirty-five (35) years old when they pull the funds out of the IRA. How much of this withdrawal is tax-free, how much of it subject to the penalty for early distributions