Eva and Lisa Each Retired This Year and Started Receiving

question 14

Multiple Choice

Eva and Lisa each retired this year and started receiving distributions from their respective retirement plans.Eva's plan was funded with all pre-tax contributions,whereas Lisa's plan was funded with only after-tax contributions (Roth plan) .With respect to the tax treatment of their retirement plan distributions

• A)distributions from both retirement plans will be fully taxable.
• B)Eva's distributions will be fully taxable,and Lisa's distributions will not be taxable.
• C)Eva's distributions will not be taxable,but Lisa's distributions will be fully taxable.
• D)neither Eva's nor Lisa's distributions will be taxable.

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Definitions:

Natural Selection

A mechanism of evolution posited by Charles Darwin, where organisms better adapted to their environment tend to survive and produce more offspring.

Predation

A biological interaction where one organism, the predator, hunts and consumes another organism, the prey, for food.

Proportionately

In a way that keeps a correct or appropriate relationship in size, amount, or degree between parts of a whole.

Average Size

A statistical measure that summarizes the central tendency of the size dimensions of a given set of objects or beings.