Only the Earnings, and Not the Amount Invested, Are Taxed

question 53

True/False

Only the earnings, and not the amount invested, are taxed when distributed from a 401(k).

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Definitions:

Operating Experience

Accumulated knowledge and skills from directly managing or running business operations.

Intellectual Honesty

Commitment to truth and objectivity in one’s reasoning and arguments, avoiding bias or misrepresentation of facts.

Owning Resources

Refers to having legal possession or control over resources such as property, intellectual property, or financial assets.

Professional Experience

The accumulation of knowledge, skills, and expertise that individuals gain through performing tasks in their respective fields or careers.