$60\mathrm{.}0\%$ complete

Question

On April $30,$ Janet, age $42,$ received a distribution from her qualified plan of $$200,000.$ She had an adjusted basis in the plan of $$525,000$ and the fair market value of the account as of April $30$ was $$625,000.$ Calculate the taxable amount of the distribution and any applicable penalty.

A$.$$$168,000$ taxable, $$16,800$ tax penalty.

B$.$$$32,000$ taxable, $$3,200$ tax penalty.

C$.$$$200,000$ taxable, $$0$ tax penalty.

D$.$$$200,000$ taxable, $$2,000$ tax penalty.