Which of the Following Statements Is True Regarding Taxpayers Receiving

question 59

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 2017 is required to pay a minimum distribution penalty if she does not receive a distribution in 2017.
• B) Taxpayers are not allowed to deduct either early distribution penalties or minimum distribution penalties.
• C) The minimum distribution penalty is 30% of the amount required to have been distributed.
• D) A taxpayer who receives a distribution from a retirement account before she is 55 years old is subject to a 10% penalty on both the distributed and undistributed portions of her retirement account.

---

Definitions:

Multiple Regression

A statistical technique that uses multiple independent variables to estimate the outcome of a dependent variable.

Least-Squares Regression

A statistical method used to determine the line of best fit by minimizing the sum of the squares of the differences between observed and predicted values.

Male Employees

Workers or staff members within an organization or company who identify as male.

Salary

Compensation for employment in the form of periodic payments, often annual or monthly, for professional or office work.