Which of the Following Statements Is True of a Distribution

question 16

Multiple Choice

Which of the following statements is true of a distribution rollover (not a trustee-to-trustee transfer) from a retirement plan?

• A)The taxpayer must instruct the trustee of the retirement plan to transfer assets to the trustee of another plan.
• B)No withholding is required.
• C)In one year, there is no limit to the number of times a taxpayer can request a distribution rollover from one IRA to another IRA.
• D)Assuming there are no unusual events, the taxpayer has a maximum of 60 days in which to transfer funds to a new plan to avoid current taxes and penalties.
• E)All of the above are true.

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Definitions:

Adolescence

A transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Emerging Adulthood

A phase of the life span between adolescence and full-fledged adulthood which encompasses late teens through the twenties, marked by exploration and self-discovery.

Jeffrey Arnett

A psychologist known for his work on emerging adulthood, a developmental phase between adolescence and full-fledged adulthood.

Transitional Period

A phase that marks the transition from one state or condition to another, often involves significant changes or adjustments.