Shauna received a $100,000 distribution from her 401(k) account this year. Assuming Shauna's marginal tax rate is 25%, what is the total amount of tax and penalty Shauna will be required to pay if she receives the distribution on her 59th birthday and she has not yet retired?

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Since Shauna received a distribution from her 401(k) account before reaching the age of 59 1/2, she will be subject to a 10% early withdrawal penalty in addition to regular income tax. Therefore, the total amount of tax and penalty she would be required to pay is $35,000 ($100,000 x 0.25 + $100,000 x 0.10 = $25,000 + $10,000).

Shauna Received a $100,000 Distribution from Her 401(k) Account This