Mr Scott, Age 46, Quit His Job with MNP Inc

question 36

Multiple Choice

Mr Scott, age 46, quit his job with MNP Inc. and withdrew the $184,000 balance in his Section 401(k) plan. Mr Scott immediately deposited the withdrawal in a new rollover Roth IRA with a local bank. Which of the following statements is false?

• A) Mr. Scott must include the $184,000 withdrawal in gross income.
• B) Mr. Scott must pay a 10% premature withdrawal penalty.
• C) Future withdrawals from the rollover Roth IRA will be nontaxable.
• D) None of the statements is false.

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Definitions:

Token Economy

Token Economy is a behavior modification system that utilizes tokens as a form of positive reinforcement for desired behaviors, which can later be exchanged for rewards.

Auditory Hallucinations

Experiences where an individual hears sounds or voices that are not present in their external environment.

Neuroleptic Drugs

An alternative term for first-generation antipsychotic drugs, so called because they often produce undesired effects similar to the symptoms of neurological disorders.

First-Generation

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