Which of the Following Statements Is True Regarding Taxpayers Receiving

question 118

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 unless the distribution is a coronavirus-related distribution of $100,000 or less.
• D)Taxpayers are not allowed to deduct either early distribution penalties or required minimum distribution penalties.

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Definitions:

Equitable Remedies

Judicial orders enforcing a party to act or refrain from acting, which are granted when legal damages are not a sufficient remedy.

Plaintiff

The person or party who initiates a lawsuit (also known as an action) before a court by filing a complaint with the clerk of the court against the defendant(s). Also known as claimant or complainant.

Title VII

A part of the 1964 Civil Rights Act that forbids job discrimination on the grounds of race, color, religion, gender, or country of origin.

Family and Medical Leave Act

A U.S. federal law that provides employees with unpaid, job-protected leave for certain family and medical reasons.