Only the Earnings, and Not the Amount Invested, Are Taxed

question 53

True/False

Only the earnings, and not the amount invested, are taxed when distributed from a 401(k).

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Definitions:

Capital Offense

An offense for which the legal system can impose the death penalty.

First-degree Felony

A classification of crime regarded as the most serious, typically involving severe harm or risk to human life.

Criminal Case

A legal proceeding against someone accused of committing a crime, where the government seeks to prove the defendant's guilt beyond a reasonable doubt.

Reasonable Doubt

The standard of evidence required in criminal trials that must be fulfilled by the prosecution to secure a conviction, indicating that there is no other logical explanation derived from the facts except that the defendant committed the crime.