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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She must pay $25,000 of income tax on the distribution and a 10% early distribution penalty ($10,000) because she was not 59½ on the date of the distribution and she had not yet retired.

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