A 52 -year-old individual nearing retirement withdraws $20,000 from their traditional IRA to pay for a first-time home purchase. What are the taxes and penalties on this withdrawal?
Answer
A
2 dollars comma 000 penalty and taxed as ordinary income
B
no penalty and taxed as ordinary income
C
no penalty and no taxes
D
1 dollars comma 000 penalty and taxed as ordinary income