Bryan,who is 45 years old,had some surprise medical expenses during the year.To pay for these expenses (which were claimed as itemized deductions on his tax return),he received a $20,000 distribution from his traditional IRA (he has only made deductible contributions to the IRA).Assuming his marginal ordinary income tax rate is 12%,what amount of taxes and/or early distribution penalties will Bryan be required to pay on this distribution?

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Bryan will pay $2,400 in income tax (12% of $20,000) and a $2,000 early distribution penalty (10% of $20,000) because he is under 59½ and the distribution is not for a qualifying exception.

Bryan,who Is 45 Years Old,had Some Surprise Medical Expenses During