Early Distributions from Qualified Retirement Plans Are Assessed a 10

question 18

Multiple Choice

Early distributions from qualified retirement plans are assessed a 10 percent penalty.However,there are some exceptions to this rule.All of the following distributions are exempt from the penalty tax EXCEPT

• A)lump-sum distributions made after age 59.5.
• B)lump-sum distributions made directly to the employee at any age when he or she changes employers.
• C)lump-sum distributions made after the death or permanent disability of the employee.
• D)distributions that are part of a series of substantially equal payments over the worker's life expectancy.

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National Output

National Output is the total value of all goods and services produced by an economy over a specific period, typically measured as GDP.

Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Employment

The condition of having paid work, or the relationship between an employer and an employee where the employee provides labor in exchange for compensation.

Positive Economics

The branch of economics that focuses on describing and explaining economic phenomena as it actually exists.