Which of the Following Best Describes Distributions from a Traditional

question 47

Multiple Choice

Which of the following best describes distributions from a traditional defined contribution plan?

• A) Distributions from defined contribution plans are fully taxable to the recipient as ordinary income.
• B) Distributions from defined contribution plans are fully taxable to the recipient as long-term capital gains.
• C) Distributions from defined contribution plans are partially taxable to the recipient as capital gains and partially nontaxable as a return of capital.
• D) Distributions from defined contribution plans are partially taxable to the recipient as ordinary income and partially nontaxable as a return of capital.

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