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

question 16

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 these statements is false.

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Definitions:

Left Hemisphere

The left side of the brain, responsible for controlling the right side of the body and involved in logical thinking, language, and analytical tasks.

Acetylcholine

Acetylcholine is a neurotransmitter involved in many functions of the body, including muscle movement, heart rate, memory, and learning.

Muscle Cells

Specialized cells that contract and relax to produce movement in the body.

Autonomic Nervous System

Part of the peripheral nervous system that controls bodily functions not consciously directed, such as breathing, the heartbeat, and digestive processes.