Scott,age 68,has Accumulated $850,000 in a Defined Contribution Plan,$100,000 of Which

question 80

Multiple Choice

Scott,age 68,has accumulated $850,000 in a defined contribution plan,$100,000 of which represents his own after-tax contributions.If the full amount is distributed in 2016,his early distribution penalty is:

• A)$0.
• B)$75,000.
• C)$85,000.
• D)$127,500.
• E)None of the above.

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Definitions:

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Payment

The act of transferring money or something of value in exchange for goods or services.

Commercially Reasonable

A standard requiring actions that are typical or expected within a business context and in good faith.

Presentment

The act of formally presenting a document, such as a check or draft, to a party for acceptance or payment.