Suppose You Have a 401(k) Plan, and You Would Like

question 11

Multiple Choice

Suppose you have a 401(k) plan, and you would like to draw the money out when you are age 45. You want the money to send your child to college. What will happen if you draw all the money out and close the account?

• A) You will have to pay income taxes on the withdrawal.
• B) You will have to pay income taxes, plus a tax penalty, on the withdrawal.
• C) You will receive the money tax-free, since you paid taxes on it when you deposited it.
• D) You will only have to pay taxes on the amount of money drawn out that represents interest earned on your deposits.

---

Definitions:

Clear Conduct Norms

These are well-defined guidelines or standards of behavior expected within a group, organization, or community.

Compelling Purpose

A powerful and motivating reason or mission that drives individuals or organizations to achieve specific goals.

Team Leadership Model

A framework that focuses on leadership functions within teams, including goal setting, structuring, facilitating, and adapting to achieve effective team performance.

Monitor

A device or individual that observes, checks, and keeps a continuous record of a process or situation.