Fte Following Are All True Statements About a Tax-Free Rollover

question 30

Multiple Choice

fte following are all true statements about a tax-free rollover to an IRA, except:

• A) Only lump-sum distributions are eligible.
• B) fte participant, but not a nonspousal beneficiary, is eligible for rollover, as a general rule.
• C) An eligible rollover can include the nontaxable portion of the distribution.
• D) fte rollover must take place within 60 days of the distribution.

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Definitions:

Stock Purchase

The act of buying shares in a company, which represents a portion of ownership in the corporation.

Discount Price

A reduced price offered on goods or services, typically below the standard cost.

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work done.

Broadbanding

A method of salary structure that consolidates a large number of pay grades into fewer, wider bands.