Eva and Lisa Each Retired This Year and Started Receiving

question 1020

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) Eva's distributions will be fully taxable, and Lisa's distributions will not be taxable.
• B) distributions from both retirement plans will be fully 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.

---

Definitions:

Implied Warranty

A warranty not explicitly stated but legally inferred to provide assurance that a product or service will meet certain standards.

Statutorily Defined

Specific descriptions or conditions outlined by law, rather than interpreted through common law or judicial opinions.

Constructive Eviction

Refers to a situation where a landlord's actions, or failure to act, substantially interfere with the tenant's use and enjoyment of the rented property, leading the tenant to vacate the premises.

Unsuitable Condition

A state or situation of an item, property, or environment that is not appropriate or fit for the intended use or purpose.