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.