Allie received a $50,000 distribution from her 401(k) account this year that she established while working for

Question:

Allie received a $50,000 distribution from her 401(k) account this year that she established while working for Big Stories Inc. Assuming her marginal ordinary tax rate is 24 percent, how much tax and penalty will Allie pay on the distribution under the following circumstances?
a. Allie is 45 and still employed with Big Stories Inc.

b. Allie is 56 and was terminated from Big Stories Inc. this year.

c. Allie is 67 and retired.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...

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