During the current year, Kyung purchases a boat for $70,000. Because she has only $7,000 of the necessary $14,000 down payment, Kyung makes a $7,000 withdrawal from her IRA. Immediately before the withdrawal, the balance in her account consists of $9,000 in deductible contributions, $13,000 in nondeductible contributions, and $3,000 in earnings on the plan’s assets. What are the tax consequences of Kyung’s making the $7,000 withdrawal from her IRA?

a. Assume that the withdrawal is made for a down payment on Kyung’s first home. What are the tax consequences of Kyung’s $7,000 withdrawal from her IRA account?