Eva and Lisa Each Retired This Year and Started Receiving

question 43

Multiple Choice

Eva and Lisa each retired this year and started receiving distributions from their respective retirement plans.Eva's plan was funded with all pre-tax contributions,whereas Lisa's plan was funded with only after-tax contributions.With respect to the tax treatment of their retirement plan distributions,

• A)distributions from both retirement plans will be fully taxable.
• B)Eva's distributions will be fully taxable,and Lisa's distributions will not be taxable.
• C)Eva's distributions will not be taxable,but Eva's distributions will be fully taxable.
• D)neither Eva's nor Lisa's distributions will be taxable.

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Definitions:

Apex

The top or highest part of something, often pointed; used in various anatomical contexts.

Auricles

The external part of the ear, also known as the pinna, which is visible on the sides of the head.

Chordae Tendineae

Tendinous cords that connect the papillary muscles to the atrioventricular valves in the heart to prevent inversion during contraction.