An individual, age 45, received a distribution of $15,000, less $3,000 income tax withholding, from a former employer's 401k plan. None of the money was rolled over. Which federal taxes apply?
Only income taxes on $15,000
Only income taxes on $12,000
Income taxes plus a 10% penalty tax on $15,000
Income taxes plus a 10% penalty tax on $12,000