Question: Question 10 (1 point) Thomas is 49 years old and has a Roth account balance in his employer's 401(k) plan. On August 11th he took
Question 10 (1 point) Thomas is 49 years old and has a Roth account balance in his employer's 401(k) plan. On August 11th he took a distribution of $100,000 from the account to buy himself a sports car. At that time, his adjusted basis in the plan was $600,000 and the Fair Market Value was $1,000,000. What is the taxable amount of the distribution, and the amount of the tax penalty? O 1. $40,000 taxable, $0 penalty 1. $0 taxable. $0 penalty 1. $40,000 taxable, $4,000 penalty 1. $100.000 taxable, $10,000 penalty
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