Heidi has contributed $20,000 in total to her Roth 401(k) account over a six year period.In 2013,when her account was worth $50,000 and Heidi was in desperate need of cash,Heidi received a $30,000 nonqualified distribution from the account.How much of the distribution will be subject to income tax and 10% penalty?
A)$0
B)$10,000
C)$12,000
D)$18,000
E)$30,000

Question

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The Answer of Heidi has contributed $20,000 in total to her Roth 401(k) account over a six year period.In 2013,when her account was worth $50,000 and Heidi was in desperate need of cash,Heidi received a $30,000 nonqualified distribution from the account.How much of the distribution will be subject to income tax and 10% penalty?
A)$0
B)$10,000
C)$12,000
D)$18,000
E)$30,000

Heidi Has Contributed $20,000 in Total to Her Roth 401(k)