If the Proceeds of a Pension Plan Are Being Distributed

question 38

Multiple Choice

If the proceeds of a pension plan are being distributed and the original beneficiary dies:

• A)The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is the spouse of the original beneficiary.
• B)The person who inherits the plan assets can elect to be treated as the original beneficiary if that person is unrelated to the original beneficiary.
• C)The person who inherits the plan assets will receive the remaining plan assets tax-free.
• D)The balance of the pension plan assets must be distributed in the year of death.

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Definitions:

Cooperation And Trust

The collaboration and reliability between individuals or organizations, fundamental for effective partnerships and teamwork.

Bullwhip Effect

The phenomenon in supply chains where orders exhibit greater variance as one moves upstream in the chain, leading to inefficiency and excess inventory.

Supply Chain

A network of organizations, people, activities, information, and resources involved in moving a product or service from supplier to consumer.

Lack Of Coordination

The absence of harmonious operation or collaboration between groups or systems, often leading to inefficiency or disorder.