In 2014, Billie Decides to Purchase a House by Withdrawing

Multiple Choice

In 2014, Billie decides to purchase a house by withdrawing $15,000 from his IRA. Brandan qualifies as a first-time home- buyer. The $15,000 consists of $12,600 in nondeductible contributions and $2,400 in income earned on the plan's assets. Billie will have to pay an early withdrawal penalty of

A) $-0-
B) $240
C) $500
D) $1,260
E) $1,500