Which of the Following Statements Is True Regarding Taxpayers Receiving

question 104

Multiple Choice

Which of the following statements is true regarding taxpayers receiving distributions from traditional defined contribution plans?

• A) A taxpayer who retires at age 71 in 2014 is required to pay a minimum distribution penalty if she does not receive a distribution in 2014.
• B) The minimum distribution penalty is 30% of the amount required to have been distributed.
• C) A taxpayer who receives a distribution from a retirement account before she is 55 years old is subject to a 10% penalty on both the distributed and undistributed portions of her retirement account.
• D) Taxpayers are not allowed to deduct either early distribution penalties or minimum distribution penalties.

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Definitions:

Pathways

Routes or courses which lead from one place to another, often used metaphorically to describe options or processes to reach a certain goal.

Messages

Units of communication intended to convey information, feelings, or instructions from one entity to another.

Formal Channels

Follow the official chain of command.

Organization's Hierarchy

The arrangement of individuals within an organization according to levels of authority and responsibility.