Thomas, who is 49 years old, received a distribution from his Roth account of his employers 401(k) plan in the amount of $100,000 on August 11th. He has been a participant in the plan for ten years. His adjusted basis in the plan was $600,000 and the fair market value of the account as of August 11 was $1 million. The distribution was for the purpose of buying a Porsche for himself for his birthday. What is the taxable amount of the distribution and any applicable penalty?

a. $0 taxable, $0 penalty because it is a qualified distribution.

b. $40,000 taxable, $4,000 tax penalty.

c. $40,000 taxable, $0 tax penalty.

d. $100,000 taxable, $10,000 tax penalty.