Marian, age $62,$ converted $$30,000$ from a traditional IRA to a Roth IRA seven years ago. Last year she convertedanother traditional IRA with a fair market value of $$35,000$ to a Roth IRA. She makes no other IRA contributions. Thisyear she took a $$40,000$ distribution from her Roth IRA. As a result, for this year,

Question $12$Answer

a$.$

the $$10,000$ from last year's conversion is subject to the $10\%$ penalty tax.

b$.$

$$20,000$ is includible in Marian s gross income.

c$.$

the $$10,000$ withdrawal from last year's conversion is not subject to the $10\%$penalty tax.

d$.$

$$10,000$ is includible in Marian s gross income.

Clear my choice