Question: Tyson (48 years old) owns a traditional IRA with a current balance of $50,000. The balance consists of $30,000 of deductible contributions and $20,000 of

Tyson (48 years old) owns a traditional IRA with a current

Tyson (48 years old) owns a traditional IRA with a current balance of $50,000. The balance consists of $30,000 of deductible contributions and $20,000 of account earnings. Convinced that his marginal tax rate will increase in the future, Tyson receives a distion in 2022 and he immediately contributes the $50,000 to a Roth IRA. Assuming his marginal tax rate is 25 percent, what amount of penalty, if any, must Tyson pay on distribution from the traditional IRA? Multiple Choice $3,750 $0 $5,000 $1,250

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