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.

---

Definitions:

Formula

In spreadsheets or mathematical software, an expression that calculates values based on given parameters or variables.

Prewritten Formula

Predefined calculations offered in spreadsheet software like Excel, which automatically perform operations on data when applied.

Excel

A spreadsheet application developed by Microsoft that allows users to organize, format, and calculate data with formulas using a system of rows and columns.

Built into Excel

A phrase denoting features or functionalities that are directly incorporated into Microsoft Excel, such as formulas, pivot tables, and charts.