Scott, Age 68, Has Accumulated $850,000 in a Defined Contribution

question 36

Multiple Choice

Scott, age 68, has accumulated $850,000 in a defined contribution plan, $100,000 of which represents his own after- tax contributions.If the full amount is distributed in 2019, his early distribution penalty is:

• A)$0.
• B)$75,000.
• C)$85,000.
• D)$127,500.
• E)None of these.

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Definitions:

Sebaceous Glands

Small oil-producing glands present in the skin of mammals, secreting sebum to lubricate skin and hair.

Testes

The male reproductive glands that produce sperm and testosterone.

Spermatic Cord

A bundle of fibers and tissues forming a cord-like structure that runs through the abdominal region to the testes.

Seminiferous Tubules

Narrow, coiled tubules within the testes where spermatogenesis occurs, producing sperm.