Heather, Age 48, Is the Sole Remaining Participant of a Money

question 82

Multiple Choice

Heather, age 48, is the sole remaining participant of a money purchase pension plan. The plan is terminated and a $240,000 taxable distribution is made to Heather. The early distribution penalty tax, if any, for 2017 is:

• A)$0.
• B)$12,000.
• C)$24,000.
• D)$30,000.
• E)None of the above.

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Definitions:

Licensed Fishing Outfits

Enterprises authorized to offer fishing activities and services, typically inclusive of guides, gear, and sometimes accommodations.

Business Organization

The structure of a company or enterprise, specifying how it is formed, run, and governed, including entities like corporations, partnerships, and sole proprietorships.

Economic Service

A service that provides economic benefit, including financial services, market analysis, and investment guidance.

Incorporated Cooperative

A cooperative entity that is legally incorporated, offering its members certain rights and protections under the law.