When a Taxpayer Receives a Nonqualified Distribution from a Roth

question 129

True/False

When a taxpayer receives a nonqualified distribution from a Roth 401(k)account the taxpayer contributions are deemed to be distributed first. If the amount of the distribution exceeds the taxpayer contributions, the remainder is from the account earnings.

---

Definitions:

Transformational Logic

A field or concept in logic that focuses on the processes and rules for transforming one logical expression or statement into another.

Field Dependence

A cognitive style characterizing individuals who tend to perceive and interpret information in a global, context-dependent manner.

Interpersonal Intelligence

One of Howard Gardner's multiple intelligences, referring to the ability to understand and interact effectively with others through effective communication and sensitivity to social cues.

Bodily-kinesthetic

Refers to the ability to coordinate and use one's body in skilled and complicated physical movements; often associated with physical activity and performance.