Question $4$

$3$ pts

Becky's qualified plan has a $$250,000$ account balance:, $$200,000$ pretax and $$50,000$ after$-$tax. Becky separates from service, receiving a distribution of $$100,000.$ Becky specifies that $$70,000$ is to be directly rolled over to her new qualified plan and that $$30,000$ is to be paid to her.

This distribution resulted in what for Becky?

An unqualified distribution of $$100,000$ to Becky in which she will be penalized by $10\%$ and has to pay taxes on the $$100,000$

Becky's distribution will not be penalized and she won't have to pay taxes on it

An unqualified distribution of $$10,000$ to Becky in which she will be penalized by $10\%$ and has to pay taxes on the $$10,000$

An unqualified distribution of $$30,000$ to Becky in which she will be penalized by $10\%$ and has to pay taxes on the $$30,000$