A 30 -year-old small-business owner withdraws $10,000 from their Roth IRA, which they have held for 4 years, to cover medical expenses exceeding 10% of their adjusted gross income. What are the taxes and penalties on this withdrawal?
Answer
A
1 dollars comma 000 penalty and no taxes
B
no penalty and taxed as ordinary income
C
no taxes or penalties
D
1 dollars comma 000 penalty and taxed as ordinary income