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.

---

Definitions:

Impairment

A reduction in the recoverable value of an asset below its carrying amount on the balance sheet, leading to a write-down of its value.

Intangible Assets

Non-physical assets owned by a business that have a useful life, such as patents, trademarks, and copyrights.

Capitalised

Expenses or costs that are added to the cost basis of a fixed asset on a company's balance sheet, rather than being expensed immediately.

Extrusion System

A process used in manufacturing to create objects of a fixed cross-sectional profile by pushing material through a die of the desired cross-section.