What amount of taxes and early distribution penalties

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Question - Bryan, who is 45 years old, had some surprise medical expenses during the year. To pay for these expenses (which were above the 7.5% of AGI threshold and 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 15 percent, what amount of taxes and/or early distribution penalties will Bryan be required to pay on this distribution?

A) $3,000 income tax; $2,000 early distribution penalty.

B) $3,000 income tax; $0 early distribution penalty.

C) $0 income tax; $2,000 early distribution penalty.

D) $0 income tax; $0 early distribution penalty.

Reference no: EM132701172

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