Which of the Following Best Describes Distributions from a Traditional

question 109

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

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Definitions:

Algorithm

A step-by-step procedure or formula for solving a problem or accomplishing some end within a finite number of steps.

Ethnic Minority

A group of people who have different national or cultural traditions from the main population within a country or region.

Verbal Aptitude

The ability to understand and process words and language, both in speaking and writing.

Gender Gap

The difference in opportunities, status, attitudes, etc., between men and women, often resulting in disparities.