Suppose You Have a 401(k) Plan, and You Would Like

question 11

Multiple Choice

Suppose you have a 401(k) plan, and you would like to draw the money out when you are age 45. You want the money to send your child to college. What will happen if you draw all the money out and close the account?

• A) You will have to pay income taxes on the withdrawal.
• B) You will have to pay income taxes, plus a tax penalty, on the withdrawal.
• C) You will receive the money tax-free, since you paid taxes on it when you deposited it.
• D) You will only have to pay taxes on the amount of money drawn out that represents interest earned on your deposits.

Analyze the impact of preexisting duties on the enforceability of new agreements.

Interpret the legal consequences of agreements under statutes of limitations.

Discern the application of specific legal doctrines to scenarios involving personal commitments and contracts.

Grasp the significance of notation on payment checks in the context of accord and satisfaction.

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Definitions:

Workplace Distractions

Factors or activities that divert an individual’s attention away from their work-related tasks.

Multi-task

The ability to handle more than one task simultaneously.

Written Communications

The exchange of messages or information in written form, utilizing various mediums such as letters, email, or reports.

Oral Communications

The process of expressing information or ideas by word of mouth.