Jonathon,age 50 and in Good Health,withdrew $6,000 from His Pension

question 69

Multiple Choice

Jonathon,age 50 and in good health,withdrew $6,000 from his pension plan during the current year.The withdrawal was not eligible for any exception to the 10% penalty.Jonathon had made $40,000 of after-tax contributions to the plan while his employer had contributed $80,000.In addition to relevant income taxes,how much penalty must Jonathon pay?

• A)$0
• B)$200
• C)$400
• D)$600

---

Definitions:

Acceptable Practices

Established norms or standards of behavior that are considered to be appropriate and acceptable within a specific field or context.

Business Practices

The methods, strategies, and procedures employed by companies in the design, production, marketing, and sale of their products and services.

Sherman Act

A United States antitrust law passed in 1890 that outlaws monopolistic practices and promotes competition.

Trusts

Legal arrangements where one party, known as the trustor, grants another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.