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Multiple Choice Question

What are the tax and penalty effects of nonqualified distributions of Roth $401($k$)$ accounts?

The entire distribution is subject to the $10\%$ penalty, but only the account earnings are fully taxable.

The entire distribution is fully taxable and subject to the $10\%$ penalty.

The entire distribution is nontaxable, but it is subject to the $10\%$ penalty.

The account earnings are fully taxable and subject to the $10\%$ penalty, but the account contributions are nont