Wan-Ying, Age 64, Retired from the Meadowbrook Corporation During the Current

question 70

Multiple Choice

Wan-Ying, age 64, retired from the Meadowbrook Corporation during the current year. Wan-Ying's defined contribution profit sharing plan is valued at $300,000 at her retirement date. Which of the following are correct statements?
I.Beginning on April 1 of the following tax year, Wan-Ying must receive either a lump sum distribution from her pension plan or begin to receive an annuity distribution.
II.By electing to receive a lump-sum distribution at the date of her retirement, Wan-Ying can wait 5 years before receiving the lump sum distribution.
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• A)Only statement I is correct.
• B)Only statement II is correct.
• C)Both statements are correct.
• D)Neither statement is correct.

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Definitions:

Confining Pressure

The pressure applied equally in all directions at any given point within the earth’s crust, often affecting rock properties.

Compression

is the application of force that presses matter together, reducing its volume or causing deformation.

Tension

A force that pulls materials apart, causing stress or strain in geological contexts, such as the stretching of the Earth's crust.

Shear

A strain in materials characterized by slippage along parallel planes, often related to faults and shear zones in geology.