Which of the Following Statements Is True Regarding Taxpayers Receiving

question 106

Multiple Choice

Which of the following statements is true regarding taxpayers receiving distributions from traditional defined contribution plans?

• A)A taxpayer who retires at age 71 in 2019 is required to pay a minimum distribution penalty if she does not receive a distribution in 2019.
• B)The minimum distribution penalty is 30 percent of the amount required to have been distributed.
• C)A taxpayer who receives a distribution from a retirement account before she is 55 years old is subject to a 10 percent penalty on both the distributed and undistributed portions of her retirement account.
• D)Taxpayers are not allowed to deduct either early distribution penalties or minimum distribution penalties.

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