Which of the Following Statements Is True Regarding Taxpayers Receiving

question 57

Multiple Choice

Which of the following statements is true regarding taxpayers receiving distributions from traditional defined contribution plans?

• A)A taxpayer who retires at age 73 in 2020 must pay a required minimum distribution penalty if she does not receive a distribution in 2020.
• B)The required minimum distribution penalty is 25 percent of the amount required to have been distributed.
• C)A taxpayer who receives a distribution from a retirement account before she is 55 years old is subject to a 10 percent penalty on both the distributed and undistributed portions of her retirement account.
• D)Taxpayers are not allowed to deduct either early distribution penalties or required minimum distribution penalties.

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