Steven Is 27 Years Old and Has a Total AGI

Steven is 27 years old and has a total AGI of $110,000 in 2015. He contracts pneumonia in 2015 and incurs a medical bill that totals $7,500. He withdraws $7,500 from his traditional IRA to pay the bill. Which of the following is true?

A) He is not subject to penalties on the IRA withdrawal because it was for medical expenses.
B) He is not subject to penalties on the IRA withdrawal because he was disabled by pneumonia for 2 weeks.
C) He is subject to penalties on the IRA withdrawal because a person may not take a withdrawal from a traditional IRA until they are 59 ½ years old no matter what.
D) He is subject to penalties on the IRA withdrawal because the withdrawal did not cover a portion of medical bills that exceeded 10 percent of his AGI.
E) None of the above is correct.