Which of the Following Is True About Future Qualified Distributions

question 31

Multiple Choice

Which of the following is true about future qualified distributions from a Roth IRA by a person who will be 65 years old at the time the distributions begin? Assume the individual opened the account before age 60.

• A)The entire amount of the distributions will be tax-free.
• B)Only the accumulated earnings will be tax-free.
• C)Only the previous contributions will be tax-free.
• D)The entire amount of the distribution will be taxable.

---

Definitions:

Tangible Job Detriment

A clear and significant negative impact on one's employment situation, such as demotion, salary reduction, or loss of benefits.

Age Discrimination

Unfair treatment of individuals in employment or other areas based on their age, particularly against older persons.

ADEA

The Age Discrimination in Employment Act of 1967, a U.S. federal law that aims to protect employees 40 years of age and older from workplace discrimination.

Mixed-Motives

In legal and organizational contexts, refers to decisions or actions influenced by both legitimate and illegitimate factors.