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:

Objects

Items, things, or entities that can be seen, touched, or otherwise sensed.

Size Constancy

The tendency to perceive objects as being the same size even though the sizes of their images on the retina may differ as a result of distance.

Infants

Young babies, typically under one year of age, who are in the earliest stage of human life, characterized by rapid physical and cognitive development.

Age

A measurement of the length of time that an individual has been alive, typically expressed in years.