Heidi (age 57)invested $4,000 in her Roth 401(k)on January 1,2011.This was her only contribution to the account.On July 1,2019,when the account balance was $6,000,she received a nonqualified distribution of $4,500.What is the taxable portion of the distribution and what amount of early distribution penalty will Heidi be required to pay on the distribution?

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The Answer of Heidi (age 57)invested $4,000 in her Roth 401(k)on January 1,2011.This was her only contribution to the account.On July 1,2019,when the account balance was $6,000,she received a nonqualified distribution of $4,500.What is the taxable portion of the distribution and what amount of early distribution penalty will Heidi be required to pay on the distribution?

Heidi (Age 57)invested $4,000 in Her Roth 401(k)on January 1,2011