When a Lump-Sum Distribution from a Qualified Pension Plan Is

question 7

Multiple Choice

When a lump-sum distribution from a qualified pension plan is made to a named beneficiary, the following amount is not includible in the plan participant's gross estate.

• A) Up to $100,000 if the beneficiary waives favorable income tax treatment on the whole distribution
• B) fte amount allocable to the participant's own contributions
• C) fte full amount, if the surviving spouse is the beneficiary
• D) None of the above

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Definitions:

Inflation

A sustained increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.

Fed Tightened

Refers to the Federal Reserve's actions to reduce the money supply and raise interest rates to control inflation.

Monetary Policy

The actions of a central bank, currency board, or other regulatory committees that determine the size and rate of growth of the money supply, which in turn affects interest rates.

Inflation

An increase in the general price level of goods and services in an economy over a period of time, leading to a decrease in the purchasing power of money.