If You Withdraw Funds from a Pension Plan Before Age

question 186

Multiple Choice

If you withdraw funds from a pension plan before age 59 ¹/₂ ,you will have to pay a ____ federal income tax penalty.

• A) 5%.
• B) 10%
• C) 15%
• D) 20%
• E) 25%

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Definitions:

Financial Crises

Periods of significant disruptions in financial markets that are characterized by sharp declines in asset prices and the failure of financial institutions, leading to economic downturns.

Achaemenids

Refers to the first Persian Empire, ruled by the Achaemenid dynasty from approximately 550-330 BCE, known for its impressive administration system, monumental architecture, and multicultural approach to governance.

Lion Capital

The top part of an Ashokan pillar, famously known as the national emblem of India, featuring four lions standing back to back.

Ashoka

was an ancient Indian emperor of the Maurya Dynasty, who ruled the Indian subcontinent from c. 268 to 232 BCE, known for his conversion to Buddhism and spreading Buddhist principles.